24Lecture

24Lecture - LECTURE 24 Today is Tuesday, November 23, 2010....

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LECTURE 24 Today is Tuesday, November 23, 2010. The price of gold closed at $1,377 per troy ounce. OLIGOPOLY (Continued) The Dominant Firm and the Competitive Fringe One of the numerous solutions to the oligopoly model is known as the dominant firm and the competitive fringe . There are a lot of personal computers available to consumers today, including desk-tops, lap-tops, Macs, and so on. At one time there were no personal computers available, just as at one time there were no automobiles available. The first big producer of personal computers was IBM, with their IBM PC-XT. 1 The IBM dominated the market, but it was expensive, and a lot of small competitors sprang up and entered the industry. Many of these competitors were small, one- or two- person operations, working out of basements and garages, making PC's from mother-boards, cases, graphics cards, chips, drives, and everything else needed, that they obtained from a multitude of different parts suppliers (many originating in the Pacific Rim). Note that what a PC purchaser is purchasing is the services provided by a PC, not the PC per se . Demanders of PCs want fast processors, good graphics, portability, good word-processing, reliability, and all the other good things we get from owning and using PCs. If a 1983 IBM PC-XT would operate perfectly for five years (it did) and has a price tag of $5,000, you could get the same services by buying a cheaper, less reliable
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24Lecture - LECTURE 24 Today is Tuesday, November 23, 2010....

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