When Personal Computers Were First Produced,the Price Was Very High

question 125

Multiple Choice

When personal computers were first produced,the price was very high.As time passed,the price of personal computers fell because

• A)the demand for personal computers decreased.
• B)people's incomes increased and personal computers are an inferior good.
• C)the initial price was too high and nobody bought personal computers.
• D)there were technological advances in the production of personal computers.
• E)None of the above answers is correct.

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Definitions:

Useful Life

Useful life is the estimated duration of time that an asset is expected to be usable for the purpose it was acquired, often influencing depreciation calculations.

Accumulated Depletion

The total amount of natural resources cost that has been allocated as an expense due to the physical removal or consumption of the natural resource.

Contra-Asset Account

An account that is used to reduce the value of a related asset, e.g., allowance for doubtful accounts reduces accounts receivable.

Natural Resources

Assets that occur in nature, such as minerals, forests, and water, often subject to depletion over time through use.