Final answer:
The price of personal computers fell due to technological advancements like the microchip, which made them smaller and less expensive to produce, and the growth of companies like Apple and IBM who expanded the market and led to economies of scale.
Step-by-step explanation:
When personal computers were first produced, the price was very high. As time passed, the price of personal computers fell because of the advancement and miniaturization of technology, particularly the invention of the microchip. The creation of the microchip in the 1970s by companies like Intel allowed computers to be more compact and cost-effective, as previously computers were large and made up of numerous separate circuits that required significant material and space.
Another pivotal moment was the establishment of Apple Computer company by Steve Jobs and his partners in 1976, along with the entry of companies like IBM into the market. These companies started competing in the production of consumer and business computers, which, along with widespread use in various sectors by the end of the 1980s, further drove down prices. The release of more user-friendly computers, such as the 1984 Apple Macintosh that introduced the world to the mouse and a graphic user interface, accelerated the mass adoption of PCs, expanding the market and leading to economies of scale that further reduced prices.
By the late 20th century, dominant companies like IBM had greatly influenced the market with the IBM PC, and companies such as Microsoft started to contribute significantly to the PC software landscape. This advancement in both hardware and software made personal computers increasingly indispensable and accessible to the average consumer.