Question

PROBLEM: Moore's Law states that we should expect to see roughly a doubling of the maximum number of transistors on integrated circuits (a.k.a. semiconductor chips) every two years or so (see article on Moore's Law in Wikipedia (Links to an external site.)Links to an external site.). A corollary to Moore's Law is that we should also expect to see a corresponding fall in the production costs, and hence also in the prices, of semiconductors that have a given number of integrated circuits In this context, with the aid of supply and demand diagrams, write a short essay on the implications of Moore's Law in terms of the following: (a) What does Moore's Law suggest about changes in the total market value (i.e., the combined revenues of all the sellers) in the semiconductor market over time? In this context also make sure to discuss to what extent the shape of the overall demand curve is likely to affect what happens to the overall revenues. (b) How do you believe that the lower semiconductor prices suggested by Moore's Law will affect markets for other products, such as cameras, cell phones, microwaves, refrigerators, etc., that include semiconductors? Please explain in details on moore's law and break down what it is actually stating.

Answer 1

Ans:- Moore's law states that we should expect to see roughly the doubling of the maximum number of transistors on integrated circuit every two years or so.