Question

The cost of producing laptop computers has fallen over the past decade. Consider some implications of this change. Show the effect of falling production costs on the market for laptop computers.

Answer 1

The falling production costs of laptop computers have several implications for the market, including lower prices and increased competition. It can also lead to technological advancements and improvements in quality.

Step-by-step explanation:

The falling production costs of laptop computers have several implications for the market. Firstly, it leads to a decrease in the price of laptops, making them more affordable for consumers. This can stimulate demand and increase sales. Secondly, lower production costs can also lead to increased competition among manufacturers, as it becomes easier for new entrants to enter the market. Lastly, the decreased cost of producing laptops may also result in technological advancements and improvements in quality as companies invest in research and development.