Computers B Us Is a Manufacturer of Customized Microcomputers

question 207

Multiple Choice

Computers B Us is a manufacturer of customized microcomputers. They are able to set their prices higher than competitors because they can assemble a computer to a customer's exact specifications. Computers B Us is operating in a competitive environment of

• A) oligopolistic competition.
• B) perfect competition.
• C) monopolistic competition.
• D) monopoly.
• E) oligopoly.

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Definitions:

Net Income

Net income is the total earnings of a company after subtracting all expenses, including taxes, interest, and operating expenses, from its total revenues.

Capital

Financial assets or the financial value of assets, such as cash and securities, owned by a business or individual, used for creating wealth or to engage in further production.

Revenue

The total amount of money earned by a business from its normal business operations, before any expenses are subtracted.

Credit Balance

An accounting situation where the sum of credits in an account exceeds the sum of debits, often seen in liability and revenue accounts.