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There are two main reasons.
The main reason is that more and more computers are being made; the quantity is going up. As more computer components are made, the costs of manufacturing go down, and the costs of research and development can be spread across a greater quantity of products. For example, if it cost $1000 to develop a product and only 5 of those product sold, the cost per product would be $200. If 20 of those products sold, the cost per product would only be $50.
The second reason is that things are being built to a poorer quality than they were 10 years ago. If a company can decrease the price of a computer, they will, even if it affects the quality of the computer.
What else can I help you with?
Explain why computer prices are decreasing even though computer functionality is increasing?
Suppy is high, while demand is low; perhaps due to the state of the economy.
What impact do monopoly rent prices have on consumer choice and market competition?
Monopoly rent prices can limit consumer choice by reducing options and increasing prices. This lack of competition can stifle innovation and lead to higher costs for consumers.
Definition of discounting?
Reducing prices
How can a business increase its gross profit?
A business can increase its gross profit by either increasing revenue or reducing costs. This can be achieved through strategies such as raising prices, increasing sales volume, reducing expenses, improving operational efficiency, and negotiating better deals with suppliers. By effectively managing these factors, a business can improve its gross profit margin and overall financial performance.
What will increase contribution margin?
As one looks at contribution margin (effectively a product's/service's financial contribution to the organization before overheads and other company-based costs), there are two things that can be done for improvement: * Cutting costs (e.g., reducing costs of production, reducing scrap loss, increasing production efficiency, automation, etc.) * Increasing sales (e.g., raising prices, increasing demand, expanding market area, etc.)
What is an economy that experiences decreasing real GDP and increasing prices suffering from?
An economy that experiences decreasing real GDP and increasing prices suffering from stagflation.
What are the monopoly rent rules and how do they impact market competition and consumer welfare?
Monopoly rent rules refer to the ability of a monopolistic company to charge higher prices due to lack of competition. This can limit market competition and harm consumer welfare by reducing choices and increasing prices.
Are gas prices high in Canada because of the Libyan crisis?
It can be one of the causes: Due to Middle East uprisings and unrest, the supply of natural gas has been disrupted, reducing the supply and thus, increasing the price.
Why properties prices always increase?
It is not always increasing.
Why the oil prices always increasing in India?
economy
What was the intention of the New Deal?
to raise prices by reducing competition.
Where are the Florida real estate prices increasing?
Real estate prices are increasing in North Miami, Loxahatchee, Brandon, Palmetto and Lady Lake. Prices are doing less well in Tavares, Palatka an North Fort Myers.
