There Are Two Existing Firms in the Market for Computer

question 65

Multiple Choice

There are two existing firms in the market for computer chips.Firm A knows how to reduce the production costs for the chip and is considering whether to adopt the innovation or not.Innovation incurs a fixed setup cost of C,while increasing the revenue.However,once the new technology is adopted,another firm,B,can adopt it with a smaller setup cost of C/2.If A innovates and B does not,A earns $20 in revenue while B earns $0.If A innovates and B does likewise,both firms earn $15 in revenue.If neither firm innovates,both earn $5.Under what condition will firm A innovate?

• A) C > 30
• B) C < 30
• C) 10 > C > 0
• D) 35 > C > 25

Grasp the principles of electro-magnetism and electro-magnetic induction.

Comprehend the behavior of electrical current in circuits.

Be familiar with the effects of magnetic flux density on induced voltage.

Recognize the significance of coil configurations and the factors that determine the strength of an electro-magnetic field.

---

Definitions:

Closed-end Investment

An investment fund that has a fixed number of shares outstanding, typically traded on a stock exchange, unlike open-end funds that can issue unlimited shares.

NAV

Net Asset Value, the per-share value of a mutual fund or exchange-traded fund, calculated by dividing the total value of all the securities in the portfolio by the number of shares outstanding.

Premium/Discount

Refers to the amount by which the market price of a bond exceeds (premium) or is less than (discount) its face value.

Front-end Load

A sales charge or commission paid by an investor at the initial purchase of mutual fund shares, usually used to compensate brokers or sales agents.