One of the First New Business Apps Resulting from the Alliance

question 26

Multiple Choice

One of the first new business apps resulting from the alliance of Apple and IBM will help airline pilots determine the right amount of fuel to carry on a particular flight.This task not only requires significant data analytics but also the need to display the information in an easily understandable way so that pilots can digest it quickly when glancing on their iPad in a cockpit prior to departure.Which of the following parts of this example will Apple be responsible for?

• A) the organization and analysis of data analytics
• B) the display of information in an easy-to-understand way
• C) the determination of the amount of fuel to carry on a flight
• D) the arrangement of the cockpit to facilitate the use of the iPad

Identify scenarios leading to the entry or exit of firms in monopolistic competition.

Describe how monopolistic competition leads to excess capacity and over-differentiation.

Contrast monopolistic competition with perfect competition and monopoly.

Evaluate the efficiency of monopolistic competition in the long run.

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Definitions:

Business Combinations

Transactions or events in which one entity gains control over one or more other businesses, often resulting in consolidations or acquisitions.

Parent-Company Method

An accounting approach where the parent company reports its investment in subsidiaries at cost, often used in separate financial statements.

Ownership Risk

The uncertainties faced by an entity's owners due to changes in the business environment, regulatory landscapes, or operational performance affecting the value of their investment.

Share Dilution

the decrease in existing shareholders' ownership percentage of a company as a result of the company issuing new shares.