Also, as the company was one of the first to enter the market, it already has the infrastructure and presence to use economies of scale to drive down prices while reducing costs.

FORBES: Amazon And Google At War Over Cloud Storage Prices

Not only did consumers enjoy the benefits of more options and greater competition, but the larger market also allowed businesses to take greater advantage of economies of scale, pushing prices down.

FORBES: Density Limits Are Urban Protectionism

Supermarkets have helped push down prices principally because of their scale.

ECONOMIST: Make it cheaper, and cheaper | The

"The amount of technology that goes into PCs is going up, and that tends to work against prices going down as fast as economies of scale are achieved, " says the IDC vice-president.

CNN: Getting Ready for Asia's PC Wars