Explain why shrinking profit margins are associated


Problem

College students could once buy a computer at a substantial discount through a campus buying program. The discounts largely disappeared in the late 1990s, when PC companies dropped their prices. "The industry's margins just got too thin to allow for those [college discounts]," said the president of Educause, a group that promotes and surveys using technology on campus (David LaGesse, "A PC Choice: Dorm or Quad?" U.S. News & World Report, May 5, 2003, 64). Using the concepts and terminology discussed in this chapter, explain why shrinking profit margins are associated with the reduction or elimination of student discounts.

The response should include a reference list. Double-space, using Times New Roman 12 pnt font, one-inch margins, and APA style of writing and citations.

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Microeconomics: Explain why shrinking profit margins are associated
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