Which of the Following Best Explains Why IBM Has Been

question 31

Multiple Choice

Which of the following best explains why IBM has been able to maintain its competitive advantage?

• A) IBM successfully transformed itself multiple times in the data information industry over a period of more than 100 years.
• B) IBM hired a new CEO to refocus the company on satisfying market needs, which demanded IT services.
• C) IBM focused on producing mainframe and mini-computers that would be produced by fully integrated companies.
• D) IBM helped kick-start the PC revolution in 1981 by setting an open standard in the computer industry with the introduction of the IBM PC.

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Definitions:

Socially Optimal

A condition where resources are allocated in the most efficient way from the society's point of view, maximizing overall welfare.

Common Resource

A resource like air or water that is not owned by anyone, can be used by everyone, and is difficult to exclude others from using.

Artificially Scarce Good

A product or service whose supply is intentionally restricted to increase its price or value, often contrary to its natural abundance.

Pay-Per-View

A service by which viewers can purchase events to be viewed on television and pay for the private telecast of that event to their homes.