Compared to the 1980s, the Price of Computer Chips Is

question 232

Multiple Choice

Compared to the 1980s, the price of computer chips is much lower today and revenues from computer chips are _____ because demand is _____.

• A) higher; elastic
• B) lower; inelastic
• C) approximately unchanged; unit elastic
• D) higher; inelastic

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Definitions:

Annual Margin

The amount of profit a company generates over a year after all expenses have been subtracted from revenues.

Investment Center

A business unit or segment within a larger corporation that is responsible for its own revenue, expenses, and investments, often evaluated on its return on investment.

Return on Assets

Return on Assets (ROA) is a financial ratio that indicates the profitability of a company relative to its total assets.

Profit Center

A segment or branch of a company that is responsible for generating its own revenues and profits, effectively treated as a separate entity for accounting purposes.