Find additional cost to reduce the functionality

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In the 1990s, IBM added a chip to their LaserPrinter line and sold it as the LaserPrinter E. The sole function of the chip was to slow the speed of the LaserPrinter by 50%. Why would IBM incur an additional cost to reduce the functionality of their product?

Your response should apply economic principles (e.g., comparative advantage, opportunity cost, cost-benefit principle) to answering one of the above questions. Your answer does not need to be correct in that it fully explains the question. Instead focus on creating an intelligent hypothesis that could potentially be tested and refined. Also avoid using technical jargon for the sake of being technical. Your response should be able to be read and understood by an intelligent individual with no training in economics. 

Each assignment will also highlight a different tool in the economist's toolkit. You do not need to specifically reference or use this tool in your submission, but it may be helpful to think about how the tool relates to the puzzle. This assignment's economic tool: Price Discrimination

Reference no: EM133241012

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