Assignment Answers Pdf for personal computer industry BB107

BB107 Micro Economics

1. The above table and figure shows recent market share data for personal computer in Malaysia. Use the above data, relevant online resources and economic reasoning to answer the following questions:

(a) Briefly describe the background of personal computer industry in Malaysia. (3 marks)

(b) Describe the trend of personal computer (PC) sales by brand in Malaysia over 2017-2019 period (table 1). (5 marks)

(i) whether the PC industry is growing or shrinking over the 2016-2020 period (figure 1) compare with other competitors such as mobile phone and tablet. (5 marks)

(ii) Provide two reasons why mobile phone and tablet can pose challenge to the dominant of PC in information technology and communication industry? (3 marks)

(d) Any visible dominant leader in the PC industry? (2 marks)

(f) Calculate the concentration ratio of PC industry (table above) (see pp. 322-23 of textbook for method) for

(i) the top three firms in the industry. (2 marks)

(ii) the top four firms in the industry. (2 marks)

(iii) compute Herfindel-index of top 5 firms in the industry. (2 marks)

(g) Do you think firms in this market exercise considerable controlling power?

(2 marks)

(h) Give one positive and negative effect of Covid-19 in the PC industry?

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