When Apple made it difficult for third-party developers, it produced both hardware and software and profited both

Fantastic news! We've Found the answer you've been seeking!

Question:

When Apple made it difficult for third-party developers, it produced both hardware and software and profited both from the sale of the computers and from the sale of software for those computers. Since the hardware and software are complements, Apple priced each below its stand-alone profit-maximizing price. With the iPhone, Apple encouraged third party developers. As the software apps produced by these developers are complements to the iPhone, they make the iPhone more valuable, allowing Apple to raise its price. The relative value of the two strategies depends on how complementary software is to the hardware and the relative ability of third-party developers relative to Apple.

Posted Date: Oct 22, 2021 09:28 AM

See More Questions

The profit (in dollars) from the sale of x infant car seats is given by P(x) = 45x - 0.025x2 - 5,000 0 x 2,400 (A) Find the average change in profit if production is changed from 800 car seats to...
The total profit (in dollars) from the sale of x calendars is P(x) = 22x - 0.2x2- 400 0 x 100 (A) Find the exact profit from the sale of the 41st calendar. (B) Use the marginal profit to...
The total profit (in dollars) from the sale of x cameras is P(x) = 12x - 0.02x2 - 1,000 0 x 600 Evaluate the marginal profit at the given values of x, and interpret the results. (A) x = 200 (B) x =...
What constant should replace the question mark in this system so that the solution set is {(1, 1, 1)}? 2x - 3y + -5x + 2y z = 0 - 2 = x + y + 2z = ? 4 -4
Based on a large national sample of working adults, the U.S. Census Bureau reports the following information on travel time to work for those who do not work at home: lower quartile 7 minutes median...
Innova uses 1,000 units of the component IMC2 every month to manufacture one of its products. The unit costs incurred to manufacture the component are as follows. Direct materials .... $ 65.00 Direct...
Assume that Merrylands Markets had an inventory balance of $$32$ 570 at the close of the last accounting period. The following sales and purchase transactions are for the current period. Purchased...
Gainesville Cigar stocks Cuban cigars that have variable lead times because of the difficulty in importing the product: Lead time is normally distributed with an average of 6 weeks and a standard...
12.Indicate, by clicking on the relevant boxes, whether the following statements are true or false?
At the beginning of the year, Carla Vista Company had total assets of $763,000 and total liabilities of $296,000. Answer the following questions. (a) If total assets increased $134,000 during the...
People will buy more if the price level rises because rising prices increase the real value of a dollar. rises because rising prices decrease the real value of a dollar. falls because falling prices...
Which two companies have set aggressive targets for their suppliers to improve overall supply chain sustainability? Walmart and IKEA IBM and 3M Mattel and Hasbro Apple and Starbucks
Identify whether each of the following elements represents an invisible import, a visible import, an invisible export or a visible export on the UK current account. 1. UK computer manufacturers buy...
Explain why a $500 million increase in government purchases of goods and services will generate a larger rise in real GDP than a $500 million increase in government transfers.
During 2009, John Johnson purchased 50 shares of common stock in Corporation DEF for $4,500. In 2015, DEE declared a stock dividend of 20 percent. The new stock received by John in the stock dividend...
The shape of a firms long-run average cost curve depends on how costs vary with scale of operation. Draw a long-run average cost curve for a firm that exhibits economies of scale, constant returns to...
A mass M is suspended by the system of ideal strings and pulleys shown. The system is static. The string tension is labelled at several positions, but there are only two pieces of string. The long...
One hundred pounds of water at atmospheric pressure are heated from 60F to 200F. What is the enthalpy change? The internal energy change? Why is the difference between the internal energy change and...
In the FRED database, find a variable that is available in both a seasonally adjusted form and a not seasonally adjusted form. Plot both over time and describe how large the seasonal variation in the...
An economic variable is persistent if declines in the variable tend to be followed by more declines, and increases by more increases. This question asks you to study the persistence of the civilian...
It has been argued that the stock market predicts recessions. Using quarterly data since 1961, plot the real value of the stock market index (the Wilshire 5000 index in the last month of the quarter...

When Apple made it difficult for third-party developers, it produced both hardware and software and profited both

Question:

Expert Answer:

develope rs and profited both from Sale of the Computers uben Apple made it thi... View the full answer

Students also viewed these finance questions