Richard purchased a computer for $600 in 2014. Compared to the $900 co

QUESTION

Richard purchased a computer for $600 in 2014. Compared to the $900 computer that he had purchased way back in 2010, the new one seems to be more efficient in terms of the price he has paid and the power of the microprocessor technology.

This is best explained by:

A. product liability.

B. property rights.

C. Moore’s law.

D. purchasing power parity.

E. sustainable strategies.

ANSWER

C
The cost of microprocessors continues to fall, while their power increases (a phenomenon known as Moore’s law, which predicts that the power of microprocessor technology doubles and its cost of production falls in half every 18 months).