Apple IncCustom-Orders the Microprocessors for Its IMac,iPhone,and IPad

question 59

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 type of chip while maximizing quality,ultimately giving customers good value for their money.These are examples of

• A) symbiotic partnerships.
• B) make-buy decisions.
• C) reciprocal agreements.
• D) supply partnerships.
• E) exclusive dealing.

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Definitions:

Price-Discriminating

A pricing strategy where a seller charges different prices for the same product or service to different customers, based on various criteria.

Allocative Inefficiency

Allocative Inefficiency occurs when the allocation of resources does not correspond to consumer preferences, resulting in misallocation of resources and potential welfare losses.

Pure Monopolist

A market situation in which a single company or entity exclusively controls the supply of a particular good or service, with no close substitutes.

Price Discrimination

A pricing strategy where a firm sells the same product at different prices to different groups of consumers, based on their willingness to pay.