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Prices of Smartphones (Assume That This Is a Normal Good)have

question 215

Multiple Choice

Prices of smartphones (assume that this is a normal good) have fallen in recent years.Over this same period,the price of the components used to produce smartphones has also fallen and consumer incomes have risen.Which of the following best explains the falling prices of smartphones?


Definitions:

Customer Service Department

The division of a company focused on addressing customer inquiries, complaints, and service requests.

Operating Divisions

Operating divisions are distinct sectors within a company that focus on different products or markets, each potentially with its own management structure.

Fixed Costs

Financial obligations like rent, salaries, and insurance that remain steady, irrespective of the levels of sales or production achieved.

Transfer Price

The price at which goods and services are transferred between departments or units within the same organization.

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