Why We Should Microsoft Have Antitrust Laws
Microsoft is the world’s frontrunner in software that supports and enhances the internet. Microsoft has become a monopoly, possessing market power in the market for operating system software and was accused and investigated for violating antitrust laws. In being a monopoly, they are one firm that maintains control of this system and creates a barrier for others to enter this market. They were investigated for antitrust actions, as they are accused of integrating Windows with Internet Explorer and putting them together as one product in order to force customer to have all of Microsoft’s products. One might ask the question, should antitrust laws be enforced in high profile sectors of our economy such as Microsoft?
Microsoft is a monopoly and the only supplier of software only compatible with …show more content…
They are considered price takers and it has a downward sloping demand curve, the market demand cure and is free to choose its price and quantity according to market demand. In a perfectly competitive market, there is a market price. Market revenue is equal to price in the market, every additional unit that is sold brings the market price. Monopolies are still profit maximizing firms and are going to satisfy profit maximizing condition that marginal cost + marginal revenue.
Antitrust laws are put into place to promote competition and benefits consumers with lower prices, higher quality products and services, as well as more of a choice. These laws prevent corporations from becoming too large and squeezing out competition. The antitrust act that Microsoft violated was the Sherman Act, section 2,” by engaging in a series of exclusionary, anticompetitive, and predatory acts to maintain its monopoly
Microsoft is a monopoly and the only supplier of software only compatible with …show more content…
They are considered price takers and it has a downward sloping demand curve, the market demand cure and is free to choose its price and quantity according to market demand. In a perfectly competitive market, there is a market price. Market revenue is equal to price in the market, every additional unit that is sold brings the market price. Monopolies are still profit maximizing firms and are going to satisfy profit maximizing condition that marginal cost + marginal revenue.
Antitrust laws are put into place to promote competition and benefits consumers with lower prices, higher quality products and services, as well as more of a choice. These laws prevent corporations from becoming too large and squeezing out competition. The antitrust act that Microsoft violated was the Sherman Act, section 2,” by engaging in a series of exclusionary, anticompetitive, and predatory acts to maintain its monopoly