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Compose a 500 words assignment on the microsoft case. Needs to be plagiarism free!
Compose a 500 words assignment on the microsoft case. Needs to be plagiarism free! The Microsoft Case Microsoft investigated for antitrust behavior Microsoft .engages .in .manufacture .of diversified computer software and a .family .of windows operating systems. The Company .have .also introduced application software that .run .in the operating systems. The applications are like the .Ms Office .Suite that .is commonly used .by .numerous .users in the world. Therefore, products of Microsoft are complementary to the operating systems in both serves and personal computers (Economides, 2001).
The Company .was investigated .for antitrust behaviors due to violating the Act that prohibits companies from monopolizing, attempts for monopolization, conspiring or combining with other people with the motive to monopolize part of a .trade .among several States. However, Microsoft was aiming at gaining the monopoly power in the PC market (Economides, 2001).
Do .you .agree or disagree that Microsoft was trying to gain monopoly power in the computer software industry?
Yes, .I do agree that Microsoft was trying to gain monopoly power in the computer software industry. .Microsoft .mismanaged the opportunity of being the leading market holder in the computer industry, which led to antitrust behavior investigations. The Company had managed to .attain .95% market share through antitrust behaviors (Brinkley & Lohr, 2000).
The reports led to the .investigation .for determining whether Microsoft is aiming at establishing a monopoly in the market of the computer software. There have been numerous facts proving that Microsoft was making .efforts .monopolize .the .industry .of software. The creation of Microsoft Office as a package that comprises of packages that are .entirely .assisting the .professional .was a deliberate move to monopolize the market. Microsoft .was also sued .due to developing an operating system that had Windows Media Player. thus, engaging the real media player in unfair competition (Brinkley & Lohr, 2000).
Are monopolies always .disadvantageous?
In Monopoly markets, Companies have market .power in given segments that .involve .the .production .of commodities. The Monopolies are also the price makers of the products produced. In the case where Government Monopoly .is involved, the government controls accessibility to production. The Government monopoly relates to a monopoly of government cooperation or an agency. However, there are Pros and cons to the natural monopoly. The natural monopoly results due to businesses that require a high start up costs in order to operate in a given business. To the company, monopoly ensures that unnecessary competition is avoided. this results to increased marginal revenue and .strong brand name (Tucker, 2010).
Monopoly ensures that an organization enjoys economies of scale due to high .quantity .of production. The economics of scale relates to costs advantages that a monopoly can enjoy due to expansion. This results to the company incurring lower marginal cost that results to .high .economic profits. The economic profit is realized when the revenue surpasses opportunity costs of inputs. Marginal cost changes are attributed alteration in production. If a company engages in .an .imperfect .competition .in order to .hold .a monopoly, it becomes subject to the legal actions for the other competitors or federal government. This is evident in the case of Microsoft .being involved .in antitrust suit. The antitrust suit focuses on reducing the uncompetitive behaviors in the market and with business practices that are unfair.
References
Brinkley J. & Lohr S. (2000). U.S. v. Microsoft. New York: McGraw Hill.
Economides N. (2001). “United States v. Microsoft: A Failure of Antitrust in the New Economy.” UWLA Law Review. Retrieved on 15 May 2012 from<. http://www.stern.nyu.edu/networks/UWLA.pdf >. Tucker B. (2010). Survey of Economics. Ed 7.
