A start-up computer company is in the process of introducing their first line of computers. These computers are high in performance and "radically slim" in design but will cost the consumer only $1,800 (average retail price). It costs the computer company $500 per computer for the materials, $300 per computer for assembly, and $1,000 for every five computers in shipping. The machines are sold to retailers for $1,500.

The company also plans on releasing a second line of computers after the first line is well established. The second line computers are mediocre in performance, “cumbersome yet manageable” in design, and will cost the consumer a mere $950 (average retail price). It costs the company $200 per computer for the materials, $150 for assembly and $200 for shipping. They will be sold to retailers for $800.