Apple Computers Is More Likely to Continue to Use Input

question 51

Multiple Choice

Apple Computers is more likely to continue to use input markets rather than manufacture its own inputs internally when _____

• A)the quality of inputs is difficult to determine.
• B)switching among input suppliers is easy.
• C)there are very few firms producing the inputs.
• D)the inputs are difficult to identify and define.
• E)transaction costs go up.

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Definitions:

Penetration Pricing

A strategy where businesses set a low price for a new product or service to attract customers and gain market share quickly, intending to raise prices later.