Concerned that its dependence on sales of microprocessors to computer firms would make it vulnerable to sharp sales declines during the recession of 2007-2009,Intel began to develop memory chips that could be used in portable consumer electronic devices such as cell phones.One reason that Intel chose to branch out from producing microprocessors for computers is that
A) sales of computers have been declining over the past decade.
B) technology with respect to microprocessor production was no longer advancing at a rate where Intel's new products were still wanted by computer manufacturers.
C) Intel had lost a majority of its market share in microprocessor production to foreign competition.
D) computers are durable goods and spending on computers follows the business cycle.

Question

Quizplus · Accepted Answer

The passage mentions that Intel was concerned about its dependence on sales of microprocessors to computer firms making it vulnerable to sharp sales declines during the recession of 2007-2009. This suggests that spending on computers follows the business cycle, meaning that during recessions, consumers are less likely to spend money on durable goods like computers. Therefore, Intel chose to branch out into producing memory chips for portable consumer electronic devices like cell phones, which are less vulnerable to such declines. Option A is incorrect because the passage does not mention declining sales of computers over the past decade. Option B is incorrect because the passage does not say that technology was not advancing at a fast enough rate for Intel's microprocessors to be wanted by computer manufacturers. Option C is incorrect because the passage does not mention that Intel had lost a majority of its market share in microprocessor production to foreign competition.

Concerned That Its Dependence on Sales of Microprocessors to Computer