Firms A, B, and C Operate in the Market for Computers

question 114

Multiple Choice

Firms A, B, and C operate in the market for computers. Each firm's product is popular in the market and distinct from what the other firms offer. The following table shows the prices of laptops from 2005 through 2007. If 2006 is used as the base year, which of the following statements is true?

• A) The prices in 2007 were 5.02% lower than the prices in 2005.
• B) The price index for 2005 will be 100, as per the unweighted price index.
• C) The unweighted price index for 2007 suggests that laptop prices were 8.17% lower than the prices in 2006, as per the unweighted price index.
• D) The laptop prices in 2005 were 3.48% higher than the prices in 2006, as per the unweighted price index.

Analyze the effects of capital quality and quantity on productivity.

Explain the law of diminishing marginal returns.

Assess the impact of technology on labor productivity and the production function.

Identify factors that influence labor productivity.

---

Definitions:

Behavioral Observation

A method used in psychological research and practice where the actions or behaviors of subjects are watched and recorded.

Physiological Measurement

The process of assessing the biological functions and processes of the human or animal body, often for the purpose of diagnosing diseases or assessing health.

Micro Expression

Brief, involuntary facial expressions that reveal true emotions, often occurring when a person is trying to conceal their feelings.

Involuntary Expression

Unconscious facial or bodily movements that convey emotions or reactions, not controlled voluntarily.