A Key Part of Apple's Business Strategy in the Electronics

question 23

Multiple Choice

A key part of Apple's business strategy in the electronics market has been

• A) to wait until competitors introduce new technology in their products before incorporating the technology in its products.
• B) to concentrate on selling its products and services through large discount retailers like Wal-Mart.
• C) the innovation of new products which initially have little to no competition.
• D) to dominate the market by offering low-end products and beating its competitors' prices.

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Definitions:

Implicit Costs

Denotes the opportunity costs of utilizing resources owned by the firm for its operations, instead of allocating them elsewhere to earn a return.

Total Cost

The sum of all expenses incurred in the production of goods or services, including both fixed and variable costs.

Accounting Profit

The difference between total revenue and explicit costs of a business.

Economic Profit

The profit a company makes after deducting both explicit and implicit costs, reflecting the total opportunity costs of its resources.