Intel is ready to introduce its new microprocessor.In chip manufacturing,as more chips are produced,production yields rise.Thus,Intel can choose between a below-cost pricing strategy (upper branch)to reach the higher-yield zone more quickly,or an above-cost pricing strategy (lower branch)and move to the higher-yield zone more slowly.AMD will introduce its new microprocessor two months after Intel,and faces the same below-cost (upper branch)and above-cost (lower branch)strategies.Writing out the outcomes on the decision tree might prove helpful as you answer the following questions.
-Refer to the decision tree above.Point X represents
A) AMD choosing to price below cost.
B) Intel choosing to price above cost.
C) Intel choosing to price below cost.
D) AMD choosing between above-and below-cost pricing.
E) Intel choosing between above-and below-cost pricing.

Question

Intel is ready to introduce its new microprocessor.In chip manufacturing,as more chips are produced,production yields rise.Thus,Intel can choose between a below-cost pricing strategy (upper branch)to reach the higher-yield zone more quickly,or an above-cost pricing strategy (lower branch)and move to the higher-yield zone more slowly.AMD will introduce its new microprocessor two months after Intel,and faces the same below-cost (upper branch)and above-cost (lower branch)strategies.Writing out the outcomes on the decision tree might prove helpful as you answer the following questions.
-Refer to the decision tree above.Point X represents
A) AMD choosing to price below cost. 
B) Intel choosing to price above cost. 
C) Intel choosing to price below cost. 
D) AMD choosing between above-and below-cost pricing. 
E) Intel choosing between above-and below-cost pricing.

Quizplus · Accepted Answer

Point X represents Intel making a decision between pricing above or below cost, as it is a decision point in the tree.

Intel Is Ready to Introduce Its New Microprocessor