Tuesday, June 11, 2019

Microsoft and Antitrust Essay Example | Topics and Well Written Essays - 500 words

Microsoft and Antitrust - Essay ExampleI therefore agree that Microsoft attempt is bingle of gaining monopoly power in the software industry. The windows operating system and the internet explorer browser are completely different products that should not be bundled together (Evans, 2002). Microsoft end is thus one that denies fair competition from other browsers and their restrictive licensing is monopoly intended.In a pure monopoly one firm has the complete control in the business of their products because of barriers of entries for other businesses. There is therefore no competition in the industry and the pricing is not based on the forces of demand and supply. I am against monopoly structure because it promotes inefficiencies and discourages competition. Consequently, monopoly products are of low quality and are highly legal injuryd hence encouraging consumer exploitation.In a monopoly, prices and quantity demanded is set at the point of intersection of the peripheral reven ue and marginal revenue curve. If the marginal cost cuts the marginal revenue curve from the lowest point possible, it means that the firm is operating at optimal capacity and there is no room for expansion and it is at this point that the profit is maximized (Fellner, 1949). Since the demand curve is downward sloping, a reduction in price is accompanied by a corresponding increase in the quantity sold. The firm is therefore the price marker and therefore records high economic profits.Monopoly likewise deprives consumers their sovereignty of choice, as there are no substitutes for the companys products. Failure or conditions that can halt the production of a companys products will therefore result in acute shortages. Monopoly pricing coupled with artificial shortages to the parliamentary procedure will result into dead weight loss to the society (2009). The locative inefficiencies in monopoly lead to loss by the society. Moreover, monopolies have been

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