Question

Increasingly, we live in an "information economy," where products like software, music, and movies require a great deal of effort to bring into existence but then can be produced with very low marginal costs. What do you predict will happen to the overall competitiveness of industries in the economy given the shift toward information-intensive activities?

Answer 1

Solution

Increasingly, we live in an "information economy," where products like software, music, and movies require a great deal of effort to bring into existence but then can be produced with very low marginal costs. The overall competitiveness of industries in the economy given the shift toward information-intensive activities will increase as the available information economy will have an impact on the consumer. The level of competitiveness of information-intensive activities industries will increase its market share.