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Against or disagreeing with Monopoly (ex. AT&T, Microsoft) This is an ARGUMENTATIVE . It has to be related towards society - Essay Example

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Companies that enjoy monopoly power over the market become the sole suppliers of the products. With a lot of controversies surrounding…
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Against or disagreeing with Monopoly (ex. AT&T, Microsoft) This is an ARGUMENTATIVE essay. It has to be related towards society
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Against or disagreeing with Monopoly (ex. AT&T, Microsoft) This is an ARGUMENTATIVE . It has to be related towards society

Download file to see previous pages... Whereas proponents argue that monopoly is favorable in carrying out research and development and operation in a contestable market, nonetheless, monopoly would lead to higher prices on consumers, lack of competition.
As a protagonist of monopoly championed this practice for cartels as they maintain that its existence leads to increase in the number of research and development projects as they earn more profits. Although, the companies operate solely in the market and get high return it does not invest the funds for research and development. Microsoft Corporation as an example of a monopoly has not shown considerable investment in the field of research and development as thought (Jones and Sufrin 573). On the contrary, as a result of obtaining patent rights companies that operate under monopoly, including Microsoft do not have any incentives to innovate other new varieties of products than specialize in the one. Because of these, many countries impose a limit on the number of years companies can hold to their patent of rights (Salanié 188).
Microsoft’s research and development is mainly because of its competitors but once these competitors who operate server operating system market stops Microsoft Company will also no longer see the benefit of carrying out more research and development as it has already come up with a lock-in effect strategy on its customers. Through this strategy, Microsoft can efficiently engage its customers in homogenous solutions made by Microsoft worldwide. It is therefore, definite that monopoly companies do not wish to spend the large amounts of profits it accumulates in research and development. Without a doubt, these monopoly companies would be adamant to produce only those products that are conducive and acceptable to the consumer rather than being innovative and make new products for its customers.
In support of monopoly, proponents contend that through ...Download file to see next pagesRead More
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