Buy custom Why Investment in Information Technology is Economically Necessary
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Increase in demand over the past few years has meant abnormal profits for firms in the short run. Profitable industries attract firms so the number of firms has increased. If there are incentives to investment in IT, the less it will cost for a firm to enter the industry. The number of firms will increase, supply will increase and prices will go down [consider the MR, ATC, etc...
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The number of firms will increase, supply will increase and prices will go down [consider the MR, ATC, etc. curve. This seems too easy of a logic.] Increased competition has driven down the price of computers. The (low-end) computer industry is becoming more perfectly competitive, which results in a greater consumer surplus and??...
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