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Microsoft Case Study: Anti-Trust Behaviour, Monopolies

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Microsoft Monopoly--Why was Microsoft investigated for antitrust behavior? Was Microsoft trying to gain monopoly power in the computer software industry? Are monopolies always bad? Give at least one example of a case where having a monopoly may actually be a good thing.

Concepts to possibly include: Monopoly Market Structure, Characteristics of Pure Monopoly, Barriers to Entry into the market, Natural Monopoly, Government Monopoly, Downward Sloping Demand Curve, Economies of Scale, Monopoly Pricing, Price Maker, Market Power, Economic Profits, Imperfect Competition, Rent Seeking Behavior, X-inefficiency, Deadweight Loss to Society, Marginal Cost, Marginal Revenue, Antitrust, Bundling.

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Solution Summary

The expert examines anti-trust behaviors for monopolies.

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Running Head: Microsoft and Anti Trust

Microsoft and Anti Trust

Microsoft investigated for antitrust behavior
Microsoft is a computer software manufacturing company in the world. Microsoft produces Windows family of operating system, Microsoft office suite for server and personal computer (Microsoft, 2011). Microsoft was investigated for antitrust behavior due to following reasons:
Monopoly
Monopoly market of Microsoft is the reason to investigate the antirust behavior of Microsoft. Company worked in the large market share that affected other software companies. Microsoft used its monopoly power in the PC operating system market to challenge the competitors and prohibit them to enter in the market that was illegal (Page & Lopatka, 2007). By using "application barrier to entry" Microsoft protected its monopoly market. It ...

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