Have a question? eNotes editors are standing by to help you.
According to microeconomic theory, what will happen to the following things if computer firms are reaping high profits?
suppose you read in a business magazine that compuetr firms are reaping high profits.with the theory of perfect competition in mind,what do you expect to happen to the following over time:computer prices, the profits of computer firms ,and the number of compuetsr on the market?
2 Answers | add yours
Teacher
Community / Jr. College
Distinguished Editor, Debater, Expert, Educator, Dickens, The Bard, Churchill, Einstein
Best answer as selected by question asker.
First of all, I do not think you should think of computer firms as being in perfect competition. They are not homogeneous products... But assuming that these firms are in perfect...
(The entire answer is 135 words.)
This is an expert answer, written by an eNotes editor. To read the entire answer, please join eNotes.
Teacher
Doctorate
Editor Emeritus, Debater, Expert, Educator, Dickens, The Bard, Churchill
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...
(The entire answer is 92 words.)
This is an expert answer, written by an eNotes editor. To read the entire answer, please join eNotes.
Join for free to answer this question
Join a community of thousands of dedicated teachers and students.
Already a member? Sign in » JOIN eNOTES
