Macroeconomics
Mrs. Marie Guest
October 16, 2015
The Struggle to Sell Amazon is a massive internet retailer that sells all sorts of products to people all around the world. Not only does Amazon sell retailed goods, but they also sell goods and services that they have created themselves. One of Amazon’s hot products is their tablets such as the Kindle Fire and the Fire smartphone. These products ring up at a relatively high price of around ninety nine dollars. Amazon is now battling a new challenge of creating a tablet that is valued at only fifty dollars. That is nearly half the prices of their other products. However, consumers are concerned for the utility of the good. Economics is the social study of how people make choices regarding the goods and services that are available to them. The leading tablet on today’s market is Apple’s IPad and IPad Mini. A market is created whenever the producers and consumers are brought together. The Apple devices offer a desirable brand and a good service to go along with it. With Apple topping the charts other companies suffer. Amazon is reported to have only output one percent of the total tablet market; whereas, Apple and Samsung made up a total of forty two percent. Amazon is producing at an inefficient production level. …show more content…
We have all heard the expression “you get what you pay for.” In many cases that is how the economy works. Cheaper products usually do not hold up as well as the more expensive products, because the quality of the less expensive item is lessor. In Amazon’s choice to create a fifty dollar tablet they are forfeiting the opportunity cost of creating a better product that has a longer battery life, a more durable structure, and a sharper screen quality. An opportunity cost is the potential loss or gain when it comes to the choice between