In the 1960s, Each Firm in the Computer Industry Was

question 117

Multiple Choice

In the 1960s, each firm in the computer industry was able to make extremely large profit margins, some as high as 50-60%.The margin decreased to 20-40% in the 1970s and to 10-20% in the 1980s.We conclude that:

• A)Market power increased in the two decades.
• B)The industry has evolved from oligopolistic to a more competitive industry in the two decades.
• C)Lower profit margins were due to the government's regulation to protect consumers.
• D)Lower profit margins were largely due to the mal-management of computer firms.

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Definitions:

Military Spending

The amount of financial resources dedicated by a nation to maintaining and equipping its armed forces and defense activities.

Malthusian Theory

A theory proposed by Thomas Malthus suggesting that population growth will outpace agricultural production, leading to widespread famine and disaster.

Population Growth

The increase in the number of individuals in a population, typically measured as a percentage change over time.

Productivity Growth

Productivity growth is the increase in efficiency of production of goods and services, measured by the output per unit of input, over a specific time period.