Unit price in the context of "Bulk purchasing"

In microeconomics, supply and demand is an economic model of price determination in a market. It postulates that, holding all else equal, the unit price for a particular good or other traded item in a perfectly competitive market, will vary until it settles at the market-clearing price, where the quantity demanded equals the quantity supplied such that an economic equilibrium is achieved for price and quantity transacted. The concept of supply and demand forms the theoretical basis of modern economics.

In situations where a firm has market power, its decision on how much output to bring to market influences the market price, in violation of perfect competition. There, a more complicated model should be used; for example, an oligopoly or differentiated-product model. Likewise, where a buyer has market power, models such as monopsony will be more accurate.

A microprocessor is a computer processor for which the data processing logic and control is included on a single integrated circuit (IC), or a small number of ICs. The microprocessor contains the arithmetic, logic, and control circuitry required to perform the functions of a computer's central processing unit (CPU). The IC is capable of interpreting and executing program instructions and performing arithmetic operations. The microprocessor is a multipurpose, clock-driven, register-based, digital integrated circuit that accepts binary data as input, processes it according to instructions stored in its memory, and provides results (also in binary form) as output. Microprocessors contain both combinational logic and sequential digital logic, and operate on numbers and symbols represented in the binary number system.

The integration of a whole CPU onto a single or a few integrated circuits using very-large-scale integration (VLSI) greatly reduced the cost of processing power. Integrated circuit processors are produced in large numbers by highly automated metal–oxide–semiconductor (MOS) fabrication processes, resulting in a relatively low unit price. Single-chip processors increase reliability because there are fewer electrical connections that can fail. As microprocessor designs improve, the cost of manufacturing a chip (with smaller components built on a semiconductor chip the same size) generally stays the same, according to Rock's law.