Firms A,B,and C Operate in the Market for Computers

question 67

Multiple Choice

Firms A,B,and C operate in the market for computers.Each firm's product is popular in the market and distinct from what the other firms offer.The following table shows the prices of laptops from 2005 through 2007. If 2005 is used as the base year,which of the following statements about the prices of these laptops is true?

• A) The prices increased by about 4.8% between 2006 and 2007.
• B) The prices were about 8.17% lower in 2007 than in 2005.
• C) The prices increased by about 3.36% from 2005 to 2006.
• D) The increase in the price of firm C's laptop outweighed the fall in the prices of the others so that the overall index for 2006 was greater than 100.

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Definitions:

Power Distance

A cultural dimension that describes the extent to which individuals in a society accept and expect power to be distributed unequally.

Humane Orientation

Describes a cultural dimension reflecting the degree to which a society encourages and rewards individuals for being fair, altruistic, friendly, generous, caring, and kind.

Institutional Collectivism

The degree to which organizational and societal cultural practices encourage and reward collective distribution of resources and collective action.

Uncertainty Avoidance

A cultural dimension that describes the degree to which a society tolerates ambiguity and uncertainty, influencing how its members deal with unfamiliar situations.