As the prices of computers fell, what happened to their quality? How is this possible? How...

As the prices of computers fell, what happened to their quality? How is this possible? How did the computer industry end up being dominated by only a few firms?

Expert Solution

It shall be noted that quality of the computers actually improved as the price fell.

The competitive process allows entry to occur in profitable industries. As profits are "squeezed" out, firms improve their product and technology, resulting in improved quality.

The computer industry ended up being dominated by only a few firms because with this technological revolution, the firms earned a higher and higher profit every year. The world went crazy about digitization. Also, it is not only the product but different technological never-seen-before features that these companies introduced in computers from time to time, that helped the potential buyers to witness the power & potential they could realize with the increased usage of computers. This provided the companies with the scope for making huge investments and brand-building, that exponentially raised their scale of production and helped them become further rich, global and so powerful, and entrenched that dislodging them became unthinkable.

Rahul Sunny answered 8 months ago

Gas prices fell in the last three months. What will be the reaction to this by...

Gas prices fell in the last three months. What will be the reaction to this by buyers and sellers? Will buyers be better off in six months? In one year? Explain using supply and demand graphs.

The quantity of demand for chickens fell by 2% when prices rose by 8%. By substituting,...

The quantity of demand for chickens fell by 2% when prices rose by 8%. By substituting, in the equation Ep, the result is (-.50). Notice a negative result. a) Why is there an inverse relationship between quantity and price? b) is elastic or inelastic. c) What does a ratio of change of 8: 2 mean? 4. If a 12% increase in the price of grapefruit juice causes a 22% decrease in the quantity of grapefruit juice demanded. On the other...

what is PZB model of service quality? explain it as clearly as possible

Corcoran Computers buys computer components for low prices, assembles the components into computers, and then sells...

Corcoran Computers buys computer components for low prices, assembles the components into computers, and then sells the computers at high prices. Each computer is assigned a unique identification number, and computers that have common configurations are categorized into types (e.g., Longitude is a laptop that is easily networked and is recommended for businesses, Elemental is a desktop that is intended for home and small businesses). Corcoran purchases computer components from wholesalers. One of Corcoran’s purchasing agents submits an order to...

How is it possible for a young business to experience growth, and increasing share prices while...

How is it possible for a young business to experience growth, and increasing share prices while their profits are simulatneously suffering from cannibalization? How/where do a firm's financial statements justify this disconnect?

Explain the “flight to quality” that happened in Germany due to the Greek Debt crisis in...

Explain the “flight to quality” that happened in Germany due to the Greek Debt crisis in 2010 and explain how this impacts the price and interest rates of German and Greek bonds? Who does this help and hurt?

Subject: Gold between 2015-2019: Explain briefly what has happened to prices of the good you have...

Subject: Gold between 2015-2019: Explain briefly what has happened to prices of the good you have chosen over the time period stated: Use the model of supply and demand and provide a textual and diagrammatic explanation, using the supply and demand curves for the changes in the prices of the good Explain the elasticity of supply and demand of the good

What happened to the interest rates during the hyperinflation in Zimbabwe? What happened to the interest...

What happened to the interest rates during the hyperinflation in Zimbabwe? What happened to the interest rate during the hyperinflation in Germany? What happeneds to interest rates during a hyperinflation? Does it rise or fall?

What happened that caused the popes to move to Avignon? What was the Great Schism? How...

What happened that caused the popes to move to Avignon? What was the Great Schism? How did the Avignon Papacy and the Babylonian Captivity affect the Church? How did it affect Christians?

Research at least two news stories involving possible cases of Munchausen by proxy syndrome. What happened in these cases?

Research at least two news stories involving possible cases of Munchausen by proxy syndrome. What happened in these cases? How were they different and how were they similar? Was the parent(s) prosecuted/convicted of any crime? Do you agree with the outcome of the case?

Question