Question

The market for tablet computers is an interesting one to study. Originally Apple had introduced the iPad and was faced with little competition. Now many other firms have released rival tablets and there has been a great proliferation of advertising. Provide some economic analysis of this situation. Is the present situation efficient or inefficient? Do consumers benefit or are they harmed by the current status of the market? Be sure to defend your reasoning with evidence cited appropriately (APA or MLA)

Answer 1

Present situation is efficient upto certain extent as customers will get many options to choose from as iPad was not affordable for everyone but also excessive advertising increases products cost as, the cost of advertising is too much and gets add on to the price of the iPad making is expensive. But also, more competition opens door for more more innovations and consumer friendly features and pricing. Hence it has both positive and negative affects but pros are certainly more than the cons.