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Wednesday, 20 February 2013

Microsoft Case

Introduction
Microsoft was investigated for antitrust behavior because it was being they supposedly use greedy, malapropos strategies to hinder Netscapes browser, implying it was a threat to the Windows empire.


Antitrust

After narration a series of articles, I do believe that Microsoft was then trying to corner the market in the computer bundle industry. Microsoft wanted so badly to be the software mega giant, that they use unique contracts to force pc manufacturers to side with IE, the Microsoft browser as opposed to Navigator, which is Netscapes browser. Microsofts position is better be in the areas of, exorbitant pricing and bundling of services.






Monopolies
Monopolies are non known for their competitive behavior, are accused of over-charging and receiving major profits.
With that abstractedness in mind monopolies do not always have got negative traits. Take natural monopolies for example, they tend to work on a more efficient train. Water and electricity go through under this definition.
There is a bad side to this notion though. What if several companies set up its own pipelines or electrical lines in whizz area. There would be to many hands in the pot so to speak and the efficiency level most likely would drop immensely.

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The incentive would still be there to reduce sales volume and charge high prices than the competitive market to stay afloat but this may lead to losses to the public in service slaying and huge profits for the monopoly. Rent-seeking is also a possibility. Rent-seeking is when someone gains finicky benefits from the government at the taxpayers or someone elses expense. (McConnell)

arrant(a) monopolies are a market structure in which one firm sells a unique product, into which entry is blocked, in which the exclusive firm has considerable control over product price, and in which nonprice competition may or may not be found (McConnell)

Conclusion
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