Answer to Question #177208 in Microeconomics for Sumbal

Question

over the past 30 years , technological advances have reduced the cost of computer chips. How do you think this has affected the market for computers? For computer software? For typewriter?

Answer 1

1. In the case of computer markets, it has increased competition between manufacturers all eager to produce cheaper computers with greater performance.
2. In the case of software vendors, developers have had to keep up with improving technology necessitating continuous improvement on the software to operate these advanced computers.
3. In the aces of the typewriter, these machines have been rendered obsolete. Today we have computers that can perform multiple tasks simultaneously faster compared to typewriters which only served one purpose.