Verified Document

Microsoft Monopoly Part Of Modern Essay

In many ways, Microsoft's point that it was a natural monopoly because of its browser and operating system being the most efficient and cost-effective solution for the market is well taken. Because of the demand for their system, there was a huge economy of scale, making PCs far less expensive. In addition, many monopolies are deadweight loss to society by taking more than giving -- Microsoft's investment and research/development continue to benefit society, and have, in fact, lowered the demand curve so that more people can afford personal computers. This has advanced the market by allowing the platform to become smaller and more efficient in the use of Smartphones and Tablets (Tutor2U, 2012; McKenzie & Shughart, 1998).

Monopolies are not always bad for society, it depends on the product. For instance, if the cost of production drops as the amount of production increases there is a benefit to the economy of scale and prices are reduced, availability increased, and society benefits. For example, power or gas companies that find excess are able to price based more on market needs than simply a high, monopolistic price. Creating competition might be greater in these cases, because the utilities...

This also provides standardization in that industry so that ancillary products and services can work better and more efficiently. The more efficient the industry, the better for the consumer in the long-run and the more the utility company is willing to expand its area for customers. This monopolization has government oversight as well so that there at least is a process if the companies wish to raise prices. The market, too, expands through exploration and research and development, benefiting consumers (Foldvary, 1999).
REFERENCES

Department of Justice. (2012). United States v. Microsoft Corporation. USDJ Antitrust Division. Retrieved from: http://www.justice.gov/atr/cases/ms_index.htm

Foldvary, F. (1999). Natural Monopolies. The Progress Report. Retrieved from: http://www.progress.org/fold74.htm

McKenzie, R. And Shughart, W. (1998). Is Microsoft a Monopolist? The Independent Institute. Retrieved from: http://www.independent.org/publications/tir/article.asp?a=322

Tutor2U. (2012). Monopoly and Economic Efficiency. Retrieved from: http://tutor2u.net / economics/revision-notes/a2-micro-monopoly-economic-efficiency.html

Sources used in this document:
REFERENCES

Department of Justice. (2012). United States v. Microsoft Corporation. USDJ Antitrust Division. Retrieved from: http://www.justice.gov/atr/cases/ms_index.htm

Foldvary, F. (1999). Natural Monopolies. The Progress Report. Retrieved from: http://www.progress.org/fold74.htm

McKenzie, R. And Shughart, W. (1998). Is Microsoft a Monopolist? The Independent Institute. Retrieved from: http://www.independent.org/publications/tir/article.asp?a=322

Tutor2U. (2012). Monopoly and Economic Efficiency. Retrieved from: http://tutor2u.net / economics/revision-notes/a2-micro-monopoly-economic-efficiency.html
Cite this Document:
Copy Bibliography Citation

Related Documents

Economic Model for Monopoly Analysis
Words: 14390 Length: 30 Document Type: Term Paper

The deal was immediately criticized as anti-competitive by William Kennard, the chairman of the Federal Communications Commission, and by the Communications Workers of America, which represents some workers at both of the merged companies. But neither government regulators nor union bureaucrats will have the slightest impact on the latest merger. They have neither the power nor the desire to oppose the plans of the giant telecommunications monopolies. More substantial opposition

Delimitations Today, Modern Business Systems
Words: 20751 Length: 75 Document Type: Research Proposal

A favorite target for conspiracists today as well as in the past, a group of European intellectuals created the Order of the Illuminati in May 1776, in Bavaria, Germany, under the leadership of Adam Weishaupt (Atkins, 2002). In this regard, Stewart (2002) reports that, "The 'great' conspiracy organized in the last half of the eighteenth century through the efforts of a number of secret societies that were striving for

Business and Society
Words: 2361 Length: 8 Document Type: Research Paper

Business and Society: The Microsoft Case "Microsoft" is one of the most well-known and highly diversified computer software manufacturing organizations of the world, founded in 1975 by Bill Gates. Only after five years of its foundation, this company earned $8 million and this success has continued to date. It is still run by its founder and its success story continues, which has made it one of the most famous organization of

Antitrust Practices and Market Power
Words: 767 Length: 2 Document Type: Research Paper

Microsoft Antitrust Case Antitrust Practices and Market Power Antitrust case: 2001 antitrust Microsoft settlement Microsoft Windows is such a ubiquitous piece of software, it is virtually impossible to imagine using a computer without it. Even though many people dislike the system, to function in contemporary life requires most students and workers to be familiar with the product. This lack of de facto choice has led Microsoft to become the subject of numerous antitrust

Economics of Public Policy
Words: 4599 Length: 15 Document Type: Term Paper

Monopolies and Trusts: Appropriate Areas for Government Intervention? Capitalism is the economic system that has dominated the United States virtually since the day of its independence. A social and economic system based on the recognition of individual rights; capitalism demands that owners' rights to control, enjoy, and dispose of their own property must be respected. In a capitalist system, the purpose of government is to protect individual economic rights, and to make

Merger Activity Due in Large
Words: 7696 Length: 27 Document Type: Term Paper

Finance-dominated proponents also maintain that boom economic periods generate a more varied divergence of valuations that fuel merger activity (Medlen 2007). In this regard, Medlen concludes that, "Taken collectively, these understandings may explain some of the merger activity in booms, but they involve certain asymmetries that undercut their explanatory power. High stock valuations allow stock to be utilized as currency and collateral for takeovers; yet stock booms also make

Sign Up for Unlimited Study Help

Our semester plans gives you unlimited, unrestricted access to our entire library of resources —writing tools, guides, example essays, tutorials, class notes, and more.

Get Started Now