In 1987 a 386 PC sold at a price of $6,995. Five years later, you could purchase essentially the same computer for $1,495. Today, you can purchase a faster Pentium for a fraction of the initial price of a slower 386 PC.
a. Why have computer prices fallen so dramatically?
b. What impact, if any, do you think the growing use of the Internet will have on the price of computers?

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The Answer of In 1987 a 386 PC sold at a price of $6,995. Five years later, you could purchase essentially the same computer for $1,495. Today, you can purchase a faster Pentium for a fraction of the initial price of a slower 386 PC.
a. Why have computer prices fallen so dramatically?
b. What impact, if any, do you think the growing use of the Internet will have on the price of computers?

In 1987 a 386 PC Sold at a Price of $6,995