When Apple Introduced the IPad the Price of and Demand

question 20

Multiple Choice

When Apple introduced the iPad the price of and demand for netbooks and notebooks were high.As a result,

• A)other suppliers introduced competing products to take advantage of the demand.
• B)consumers stopped buying netpads.
• C)manufacturers stopped producing netpads.
• D)competition was not allowed to enter the market.
• E)the equilibrium price met supply.

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Definitions:

Economies of Scale

Cost advantages reaped by companies when production becomes efficient, as the scale of the operation and output increases.

Coordination Problems

Challenges that arise in aligning the plans and actions of multiple parties in order to achieve a common goal or optimize outcomes.

Economic Profit

is the excess of total revenue over the total costs, including both explicit and implicit costs.

Accounting Profit

Accounting profit is the net income a company reports on its financial statements, calculated as total revenues minus explicit costs and depreciation.