Future Electronics Inc

question 29

Multiple Choice

Future Electronics Inc.'s body scanning machine has been adopted by majority of the healthcare market.As a result,the company demands a high price from its customers,which mainly include hospitals.It is not investing much on innovation and its product variety is also very low.This cost borne by the users in this case is referred to as:

• A) marginal cost.
• B) social cost.
• C) monopoly cost.
• D) deferred cost.

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Definitions:

In Perpetuity

In perpetuity refers to an infinite amount of time, often used in finance to describe payments that continue forever.

Stock Warrants

Financial instruments that give the holder the right to purchase a company's stock at a specific price before a certain date.

Nonmonetary Exchange

A transaction in which businesses or individuals trade goods or services without the use of money.