ACE Electronics introduces a new voice-activated personal computer that no longer requires a keyboard. ACE charges the high price of $11,000 per unit, thus generating large profits because it has a 20% market share. ACE's major problem in the future will most likely be
A) survival.
B) cash flow.
C) competition.
D) return on investment.
E) profit.

Question

Quizplus · Accepted Answer

ACE Electronics' high price and 20% market share will likely attract competitors who will offer lower prices and possibly better features. This may lead to a decrease in ACE's market share and profit margins, making competition their major problem in the future.

ACE Electronics Introduces a New Voice-Activated Personal Computer That No