Andy Dungy Owns a Company That Makes IPod and IPhone

question 21

Multiple Choice

Andy Dungy owns a company that makes iPod and iPhone accessories. He is trying to increase his sales, primarily because he knows that increasing production lowers the average cost of each unit produced. The reason for growth illustrated in this example is:

• A) economies of scope
• B) market leadership
• C) influence, power, and survivability
• D) need to accommodate the growth of key customers
• E) economies of scale

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Definitions:

Expected Price Level

This term indicates the average of current and anticipated prices for goods and services in an economy.

Short-Run Aggregate-Supply Curve

A graphical representation that shows the relationship between the total production of goods and services at different price levels in the short term, assuming some input prices are fixed.

Unemployment Rate

The measure of individuals in the labor force who are without jobs but are actively trying to find employment.

Price Level

A measure of the average prices of goods and services in an economy, indicating the cost of living and inflation.