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&nbsp.engages&nbsp.in&nbsp.manufacture&nbsp.of diversified computer software and a&nbsp.family&nbsp.of windows operating systems. The Company&nbsp.have&nbsp.also introduced application software that&nbsp.run&nbsp.in the operating systems. The applications are like the&nbsp.Ms Office&nbsp.Suite that&nbsp.is commonly used&nbsp.by&nbsp.numerous&nbsp.users in the world. Therefore, products of Microsoft are complementary to the operating systems in both serves and personal computers (Economides, 2001).

The Company&nbsp.was investigated&nbsp.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&nbsp.trade&nbsp.among several States. However, Microsoft was aiming at gaining the monopoly power in the PC market (Economides, 2001).

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Do&nbsp.you&nbsp.agree or disagree that Microsoft was trying to gain monopoly power in the computer software industry?

Yes,&nbsp.I do agree that Microsoft was trying to gain monopoly power in the computer software industry.&nbsp.Microsoft&nbsp.mismanaged the opportunity of being the leading market holder in the computer industry, which led to antitrust behavior investigations. The Company had managed to&nbsp.attain&nbsp.95% market share through antitrust behaviors (Brinkley & Lohr, 2000).

The reports led to the&nbsp.investigation&nbsp.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&nbsp.efforts&nbsp.monopolize&nbsp.the&nbsp.industry&nbsp.of software. The creation of Microsoft Office as a package that comprises of packages that are&nbsp.entirely&nbsp.assisting the&nbsp.professional&nbsp.was a deliberate move to monopolize the market. Microsoft&nbsp.was also sued&nbsp.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&nbsp.disadvantageous?

In Monopoly markets, Companies have market&nbsp.power in given segments that&nbsp.involve&nbsp.the&nbsp.production&nbsp.of commodities. The Monopolies are also the price makers of the products produced. In the case where Government Monopoly&nbsp.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&nbsp.strong brand name (Tucker, 2010).

Monopoly ensures that an organization enjoys economies of scale due to high&nbsp.quantity&nbsp.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&nbsp.high&nbsp.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&nbsp.an&nbsp.imperfect&nbsp.competition&nbsp.in order to&nbsp.hold&nbsp.a monopoly, it becomes subject to the legal actions for the other competitors or federal government. This is evident in the case of Microsoft&nbsp.being involved&nbsp.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&lt. http://www.stern.nyu.edu/networks/UWLA.pdf &gt. Tucker B. (2010). Survey of Economics. Ed 7.

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