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Anti-trust behavior of Microsoft - Essay Example

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In the paper “Anti-trust behavior of Microsoft” the author investigates Microsoft for its anti-trust behavior i.e. its power to charge higher prices than what Windows Operating System could have fetched in the competitive market and its overall market share in the operating systems market…
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Anti-trust behavior of Microsoft
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Anti-trust behavior of Microsoft

Download file to see previous pages... Further, there were no technical barriers to enter into the market as the product was not developed by using some unique skills or material which were not available to other suppliers in the market.  (Chan, The Seattle Times)There are however, certain other conditions to be met if one can completely characterize a firm as a pure monopoly. One of the key characteristics of monopoly market structure is the high barriers to entry either through technological sophistication or through other legal barriers. Further, seller must have the ability to discriminate on price by either reducing the quantity or price in order to sell more. It was the overall quality and ease with which a general consumer can use Microsoft’s operating system which made it the number one choice for the consumers. The price as well as the graphical user interface of the operating system actually made it simpler for the end users to operate the system.Monopolies could be good because they are quick to achieve the economies of scale and avail lower average variable cost. Low cost therefore could result into the low prices therefore monopolies could be helpful in allowing consumers to enjoy lower prices. For example, Google’s search engine services are offered free of cost despite the fact that Google also has achieved the virtual status of a monopoly in the search engine market. Though Google is a monopoly however, its services are offered free of cost to every user therefore this type of monopoly can be good. ...Download file to see next pagesRead More
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