Microcomputer microeconomics

Abstract

This paper outlines the procedures for an economic analysis of a microcomputer system designed for personal use. It provides a methodology for application identification and quantification of the benefits derived from the applications. Empirical decision rules are suggested for the key decisions of quantity and mix of software, start-up and cessation timing, and resource allocation. These rules are based upon analysis of marginal opportunities gained and foregone over the lifecycle of the system. Particular emphasis is placed upon the role of software in the economics of the system. Economies of scale and sensitivity analysis are also discussed. the thesis serves as a structured beginning for further research into microcomputer system modeling.