Computers Are a Complement to Computer Software

question 515

Essay

Computers are a complement to computer software. Suppose the price of a computer falls. Simultaneously, suppose that the number of companies selling computer software decreases. How do these changes affect the price and quantity of computer software?

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Definitions:

Competitive Strategies

Tactics and plans developed by a business to achieve a competitive advantage in the market and outperform its competitors.

Porter's

Refers to theories and models developed by Michael E. Porter, including his Five Forces framework for industry analysis and competitive strategy.

Cola Drink

A carbonated soft drink flavored with cola nuts and other ingredients.

SWOT Analysis

A strategic planning technique used to help an individual or organization identify Strengths, Weaknesses, Opportunities, and Threats related to business competition or project planning.