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Microsoft Antitrust Investigation Paper

744 Words3 Pages

The purpose of this paper is to identify an antitrust investigation for a firm, to discuss the reason for the investigation, and the impact its impact on the firm. The paper also identifies the practices and power of monopoly and oligopoly market structures. It also discusses the advantages and disadvantages of monopoly market.
Discussion
Microsoft Antitrust Investigation
The law and economics of United States vs. Microsoft, is a landmark case of antitrust intervention in network industries. The Sherman's antitrust law in the areas that apply to the Microsoft case are "Every person who shall monopolize, or attempt to monopolize, or combine or conspire with any other person or persons, to monopolize any part of the trade or commerce among the …show more content…

The monopolist is extracting a price from consumers that is above the cost of resources used in making the product and, consumers' needs and wants are not being satisfied, as the product is being under-consumed. Since monopolies are the only provider, they can set pretty much any price they choose, regardless of demand, because they know the consumer has no choice. They can also supply inferior products. Therefore, I believe that monopolies and oligopolies market structures are not customer friendly. For example, the area I live used to only use Comcast TV network because that was the only cable company serving that area which made them a monopoly. Residents did not have a choice but to use them if they wanted cable. Their prizes were very high; network was poor and had limited channels. It was difficulty for other cable companies to access the area. Customer s service was very poor especially once you have subscribed and sometimes, residents have to wait for days to get help if their services were interrupted for any reason. All of this was because Comcast monopolized the area at that time. After several complaints by residents, Verizon was allowed to service the area. This brought competition as customers now had a choice. Several residents made to switch from Comcast to Verizon which affected their sales. Comcast realizing the effects of the competition, started offering specials discounts, offered more channels and improved their customer service. This is one reason why competition is good because it benefits the customers versus monopoly that benefits the

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