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This posting addresses Dell managerial economics.

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Dell Computer Corp, the world's largest personal-computer maker, is keenly aware of everything its rival PC manufacturers decide to do. Explain why Dell usually reacts more quickly and more substantially to pricing, product design, and advertising decisions made by Hewlett-Packard and Gateway than when these same types of decisions are made by Apple Computer.

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Apple isn't a substitute for Dell. Dell is keenly aware of the decisions and reacts immediately to them when they are made by the major competitors of Dell because they are just that, major competitors. All companies mentioned, including Dell, HP, and ...

Solution Summary

The solution discusses why Dell usually reacts more quickly and more substantially to pricing, product design, and advertising decisions made by Hewlett-Packard and Gateway than when these same types of decisions are made by Apple Computer.

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