Apple Introduced Its IPhone 3G in July 2008 and Within

question 49

Multiple Choice

Apple introduced its iPhone 3G in July 2008 and within a month sales had topped 3 million units.By April 2009,more than 25 000 apps for the iPhone 3G were available in the iTunes store,an indication that in a competitive market,

• A) the ease with which a new firm can enter is low.
• B) the ease with which a new firm can enter is high.
• C) entry into the market is blocked.
• D) entry into the market is restricted in the short run, but becomes easier in the long run.

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Definitions:

Common Stock

Equity securities that represent ownership interests in a corporation, providing voting rights and entitling the holder to a share of the company's success through dividends and/or capital appreciation.

Expense Recognition

An accounting principle that dictates the conditions under which expenses are recognized and reported in financial statements.

Revenue Recognition

The principle that dictates the specific conditions under which revenue is recognized and recorded in the accounts.