Given the Many Components of a Personal Computer That Are

question 11

Multiple Choice

Given the many components of a personal computer that are perfect complements, which of the following factors would NOT contribute to increased profit for Microsoft as a supplier of operating systems?

• A)A single corporation (Intel)controls the overwhelming majority of the market for CPU chips.
• B)Hardware has largely become a commodity.
• C)The market for DRAM memory chips is highly competitive.
• D)Microsoft Office is frequently bundled with PCs.
• E)More than one of the above answers is correct.

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Definitions:

Gross Profit

The financial gain obtained after deducting the cost of goods sold from sales revenue, before subtracting any operating expenses.

Net Present Value

It's the calculation of the present value of all cash entering minus the present value of all cash exiting over a certain period.

Sales Quantity

The total number of units sold within a specific period.

Discounted Payback Period

The period of time it takes for an investment's cash flows, discounted back to the present value, to cover its initial cost.