At a Price of $1,000,Dell Computer Co

question 270

Multiple Choice

At a price of $1,000,Dell Computer Co.is willing to sell 20 laptops and Lenovo is willing to sell 40 laptops.Hewlett Packard will only sell laptops if the price is $1,300 or higher.From the point of view of Hewlett Packard,$1,300 is the

• A) minimum supply price.
• B) minimum cost.
• C) equilibrium price.
• D) minimum loss price.

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Definitions:

Capital Intensity Ratio

A measure of the amount of capital needed per dollar of revenue, indicating the investment required for a company to maintain its current level of production.

Full Capacity

The maximum level of output that a company can sustain over a period of time without increasing the production resources.

Long-term Debt

Borrowings or financial obligations that are due for repayment over a period longer than one year.

Capital Intensity Ratio

A financial measure that indicates the amount of assets or capital required to generate a dollar of revenue, illustrating the capital efficiency of a company.