The market for microcomputers (PCs)is fairly competitive and the products are somewhat homogeneous.Over time,new firms have entered the market to make profit on new configurations of the microcomputer,and profits
A)have risen dramatically.
B)have stayed the same for most firms.
C)have become razor thin for many producers.
D)have not influenced the decisions of the firms

Question

Quizplus · Accepted Answer

The statement mentions that the market for microcomputers is fairly competitive and the products are somewhat homogeneous. This means that there are many firms producing similar products, which creates price competition. As new firms enter the market, the competition becomes even more intense, which drives down profits for many producers. Therefore, profits have become razor thin for many producers.

The Market for Microcomputers (PCs)is Fairly Competitive and the Products