If You Are Considering Buying Either an Apple Watch or a Samsung

question 428

Multiple Choice

If you are considering buying either an Apple Watch or a Samsung Gear S2,and you choose the Samsung only because the price is lower,then you consider

• A)the Apple Watch to be a normal good and the Samsung Gear S2 to be an inferior good.
• B)the Apple Watch to be an inferior good and Samsung Gear S2 to be a normal good.
• C)the Apple Watch and the Samsung Gear S2 to be complements.
• D)the Apple Watch and the Samsung Gear S2 to be substitutes.

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Definitions:

Strategic Benefits

Advantages gained by a business that help it achieve its organizational goals, often through improved competitiveness or market positioning.

Acquisition

The process of acquiring control of another company or asset.

Economies of Scale

Refers to the cost advantage experienced by firms when production becomes efficient, as the scale of production increases, leading to a decrease in average costs per unit.

Horizontal Merger

A merger between companies in the same industry, often aiming to increase market share, reduce competition, or achieve economies of scale.