Discuss the external economies and diseconomies, which computer firms may experience?

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This is a great question in this economy. There will many challenges to computer companies in the future. The idea behind diseconomy is that firms will have increase price per uint, which will make it harder to market and for people to afford. I think this is happening now. Stagflation...

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This is a great question in this economy. There will many challenges to computer companies in the future. The idea behind diseconomy is that firms will have increase price per uint, which will make it harder to market and for people to afford. I think this is happening now. Stagflation is another term that might help.

Stagflation basically states that there will be inflation of prices, but pay wages will stay the same. This is the worst possible scenario and it seems that we may be going in that direction. If so, companies (computer companies included) will have to sell their goods at a higher prices due to the increases in raw materials.

In light of all of this, companies will have to pay more to produce. This means that less people will buy, because they cannot afford much.

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