Canesta Company Has Developed a Virtual Keyboard Out of Light

question 15

Multiple Choice

Canesta Company has developed a virtual keyboard out of light to be used with cell phones and personal digital assistants (PDAs) . The product beams an image of a keyboard on a desk, allowing the user to type on the image. The words are picked up by the user's digital device. When introduced to the market, the device will sell for less than $50. If, in choosing its channel, Canesta is most concerned about the life cycle of the device, what will its choice of channels largely be influenced by?

• A)factors of production
• B)customer characteristics
• C)product factors
• D)market factors

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Definitions:

Metropolitan Area

A region consisting of a densely populated urban core city and its less-populated surrounding territories, sharing industry, infrastructure, and housing.

Resource Suppliers

are entities or individuals that provide the inputs needed for production processes, including raw materials, labor, and capital.

Herfindahl Index

A measure of the concentration of industries, calculated by summing the squares of the market shares of each firm within the industry.

Market Power

The ability of a company or group of companies to manipulate the price of an item in the market by controlling its supply, demand, or both.