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

question 181

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

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Definitions:

Flow Times

The total time that a product or service takes to go through the entire process or system from start to finish.

Price Discrimination

The practice of selling the same product to different buyers at different prices, based on factors such as willingness to pay, quantity purchased, or buyer characteristics.

Differential Prices

The practice of charging different prices for the same product or service to various customers based on market factors.

Fixed Cost

Expenses that do not change with the level of output or production, such as rent or salaries.