Apple Inc Custom-Orders the Microprocessors for Its IMac, IPhone, and IPad

question 191

Multiple Choice

Apple Inc. custom-orders the microprocessors for its iMac, iPhone, and iPad. Intel makes chips for the iMac and Samsung produces Apple-designed chips for the iPhone and iPad. Intel and Samsung work with Apple to minimize costs for each of them while maximizing quality, ultimately giving customers good value for their money. This is an example of

• A)a symbiotic partnership.
• B)a make-buy decision.
• C)a reciprocal agreement.
• D)a supply partnership.
• E)an exclusive dealing.

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Definitions:

Demand

The willingness and ability of consumers to purchase a quantity of goods or services at various prices during a specific time period.

Price Elasticity

A measure of the responsiveness of the quantity demanded or supplied of a good or service to a change in its price.

Agricultural Products

Items derived from farming and livestock activities, including crops and animal products, used for consumption, processing, or further crop production.

Farm Share

The proportion of the total food dollars that go directly to the farmers, reflecting their part in the production process.