Microeconomics and Macroeconomics Research
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This task involves a case study to describe microeconomic research (such as whether Microsoft is a monopoly or not). And in the macroeconomic environment, discussing the effectiveness of the monetary policy in the U.S. and other countries. Please assist in explaining a concept of these theories.
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Solution Summary
This solution explains the market power of firms and economic power of governments. The sources used are also included in the solution.
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From the point of view of economic theory, a monopoly is formed if an industry or a sector has only one producer of goods. Theoretically a monopoly exists only if there is one supplier of a particular product or commodity. Monopolies harm the interests of consumers because they enable the entity to set the price on goods. Monopolies do not care for competitive pricing. There are no competitors in a monopoly.
In case of Microsoft, in case of most products, it is not a monopoly. Even though its Windows operating system sells globally there are other operating systems such as the Mac and Linux. Microsoft is considered a monopoly by several people because of its large market share for its products, but this does not make it a monopoly. Similarly, in case of web browsers and software, there are several competitors of Microsoft and so there is no evidence that Microsoft is a monopoly. During the United States v. Microsoft Corporation case the allegation was that Microsoft had violated the Sherman Antitrust ...
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