Technological Progress Has Made It Possible for Firms Such as Apple

question 109

Multiple Choice

Technological progress has made it possible for firms such as Apple and Alivecor to develop small electronic devices,including smartwatches,smartphones,and products that can be attached to the smartwatches and smartphones,to serve consumers who have become more health conscious and wish to monitor various health conditions.These firms are reacting to which of the three key economic ideas?

• A)firms attempt to maximize revenues
• B)optimal decisions are made at the margin
• C)people are rational
• D)people respond to economic incentives

---

Definitions:

Liability Limitation

A clause in a contract that restricts the amount of compensation that can be claimed for breaches of the contract or other liabilities.

Cash Assets

Liquid funds or assets readily convertible into cash without significant loss in value.

Preferred Shares

Type of stock that grants holders priority for dividends over common stockholders and rights to assets in the event of liquidation.

Winding Up

The process of dissolving a business by disposing of its assets, paying off creditors, and distributing any remaining assets to shareholders or owners.