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Comparing Microsoft And Standard Oil Companies

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In this paper I will be discussing what an imperfect competition is and what types of imperfect compeitions there are such as a monopoly. Monopolies are prime type of imperfect competition which have a lot of control over the market conditions. This paper will discuss examples of monopolies and a few I will highlight are Microsoft and the Standard Oil company. This paper will also highlight the implications created for the market, competition, and effects on the welfare of consumers.

An example of a monopoly is Microsoft's Windows operating system. Microsoft was accused of engaging in anti-competitive activities while dominating the market for personal computer operating systems in the late 1990s. Its integration of the Internet Explorer web browser with Windows resulted in high-profile antitrust litigation, showing the difficulties monopolistic activities in the computer industry (U.S. V. Microsoft, 1999). Microsoft held over 90% of the share of the market for Intel PC operating systems for a whole decade before the court decided that Microsft was infact a monopoly. With Apple's Mac OS included in the market, Microsoft still held over 80% of the market (U.S. V. Microsoft, 1999).

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Standard Oil attained substantial control in the oil sector, Microsoft enjoyed a dominating position in the market for personal computer operating systems. Both businesses used aggressive tactics to drive out rivals and increase their market dominance. Standard Oil engaged in acquisitions and exploitative pricing techniques, whereas Microsoft combined its operating system and web browser. This reduced competition, made many question unethical activity, and ultimately resulted in legal action being taken against both corporations, showing the negative impacts of monopolistic behavior on the functioning of the market and the welfare of

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Some of the ways Monopolies because monopolies were through both horizontal and vertical integration, These two processes were the foundation of Industrial businesses like the Standard oil company led by Rockefeller and Carnegie steel, it allowed these power houses to control the amount of competition they had and how much it cost. These companies would have the reduced processing price because they set the price then sold it at a cheaper price, putting other businesses in shambles, An example of this is in (Doc H). This apparent genius of a process made it so people could only buy their product from them, it did allow for them to fix prices for items like food, fuel.(Doc A) this did allow for a sort of comfortable lifestyle that was defined as American consumerism. Through corporations like sears in the 1870s people were able to buy luxuries through this new affordable lifestyle. (Doc I).

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Even further, these robber barons would often ruthlessly eradicate competition by buying out other companies to establish monopolies through the horizontal and vertical integration of production and product.

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During America's Progressive Era, large monopolies controlled the industries in which they did business, increasing the economy and harming the people. Monopolies were a big thing during the progressive era. A monopoly is when one person or business owns a product that they can only sell and produce. For example, a big industry like oil used to be owned by the Rockefellers, and they were the only ones who could sell oil in America. According to the Newsela article "Entrepreneurs: John D. Rockefeller," "Standard Oil continued to spread."

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In the mid to late 1800's, oil was used for lamps, but as the years evolved, a man by the name John D. Rockefeller, had saved his money long enough to start his own oil business. But as the company became popular, it also became a trust, where less competition couldn't bypass the prices or substitute the popular product of oil. A monopolistic market is a product company that has raised price levels high, and only comes from one business. Therefore the consumer is forced to only purchase the product from that business.

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Another unpleasant side affect of the sudden industrial boom was the rise of trusts and monopolies. Both were severely detrimental to workers, as well as to consumers. For this reason, the government had a responsibility to break up prominent monopolies, such as the one held by Standard Oil. A trust forms when a company has control of several other companies in the same business. When that company controls all other companies in the same industry, the trust becomes

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Monopolies in the 1900’s had immense powers in the market, and were able to have complete control because they had such power. A monopoly is the “exclusive control of commodity, market or means of production” where the “power is concentrated in the hands of a select few” (Beattie). While monopolies do get jobs done and inquire a large amount of money, their success it at the expense of the people and the power they have obtained is abused. They started off liked by small businesses because it helped with shipping costs, but eventually monopolies became too powerful. They are more hurtful to the public than helpful, and the benefits they gain from being a monopoly hurts the public, making them a collective dilemma.

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Monopolies in Industry The government should break up Standard Oil’s monopoly. “Industry in the late 1800s was dominated by trusts. Successful trusts became monopolies, which had negative effects on workers and consumers.

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Company owners make creations for other things that are helpful, but whilst doing this it doesn’t help people financially and wealth wise; therefore, this is an example of monopoly that will be discussed later on. Agriculture Agriculture can cause monopolies in ways that can harm land and

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The reasoning stands that regulation of a monopoly obstructs competitiveness, stunting the industry’s growth. It is a competitive market that creates innovative solutions and furthers human progress. Friedman’s main example is the US railway, where the 19th century had great need for the railway system, yet with the emergence of cars and planes, railroads nearly became obsolete. Thus not only do monopolies hinder the freedom of choice they also hinder the industry by depriving it of innovation. Notably, Friedman clarifies that each case of a monopoly needs to be studied independently.

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Furthermore, the monopolies got rid of the competition so there was no competitive price point. This was not fair for the commoner because the businesses could change the cost of their products and people would have to pay what they charged. The United States has tried to remove all of the monopolies starting with President Theodore Roosevelt. Today there are practically no monopolies in the United States, but in two-thousand four Microsoft was sued for a monopoly of their product Microsoft Word, this was a very rare

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Systems are deployed consistently with high standards to be the best in class for the operational performance. Continued long-term focus on maximizing profitability and returns from every asset is key for all the business segments. This long-term approach has positioned each of Exxon’s business to be at the top of their respective areas of competition, which allows Exxon to maximize long-term shareholder

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These include some well-known technology companies such as Apple, Google, IBM, Oracle and more. Microsoft is a very diverse company that offers many different products and services. However, it does face some heavy competition in key areas of the technology sector. Microsoft’s first focus was software and even though they still have a strong emphasis and this sector, they have branched out into other areas as well.

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Hence we assume this to be a situation of duopoly. The 2 companies sell products which are very close substitutes and are constantly fighting for greater market share. A person may buy a Coke product instead of a Pepsi one, and vice versa. The objective of both is to maximize their profit.

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1.0 INTRODUCTION In an economy, there exists different market structures to accommodate different industries and firms. This study will be made to understand in further depth the market power of different market structures, and in particular an example of using case studies of agricultural sector of the French markets to explain how an ideal perfectly competitive market works. This will then be further strengthened with several references linked to the case study. 1.1 Monopoly market

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