Klaus's Office Has Always Used Tangerine Computers

question 7

Multiple Choice

Klaus's office has always used Tangerine computers. His technical people have suggested that he switch all his employees over to Vale computers. Klaus is reluctant because it will mean not only replacing all the computers but also buying all new software and taking the time to train everyone. Klaus is worried about

• A)barriers to entry.
• B)benchmarking.
• C)environmental uncertainty.
• D)switching costs.
• E)strategic maneuvering.

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Definitions:

Equilibrium Price

The price at which the quantity of a good demanded by consumers equals the quantity supplied by producers.

Fine

A monetary penalty imposed by an authority as punishment for a breach of law or rule.

Demand Curve

A graphical representation showing the relationship between the price of a good and the quantity demanded.

Negatively Sloped

Describing a line or curve on a graph that moves downward from left to right, indicating a negative relationship between two variables.