Sunday, September 30, 2012

According to microeconomic theory, what will happen to the following things if computer firms are reaping high profits?suppose you read in a...

Here are a few predictions that were not mentioned.


1. Computers would have to get better and more innovative. In fact, I would say that there would have to be some major advancement, or computer companies will not be able to sustain growth. Why would people buy another computer without good reason?


2. In time the number of computers in the world will increase to the point that it might hurt the computer market. Through this, sales may eventually do down.


3. While times are good, many allied companies will do well, such a advertising.

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