The Microsoft Case Essay Example for Free

The Microsoft Case EssayWhy was Microsoft investigated for antitrust behavior? Microsoft is a huge, established, salutary known computer software manufacturer. They were investigated for antitrust behavior after allegedly abusing their powerful position as the leading suppliers of computer operating systems. Microsoft developed a monopoly market structure be pull in the software which they created was only harmonious with Microsoft Windows operating systems. Back when the internet was introduced to the public, Microsoft provided Internet Explorer for free, bundled with Windows operating systems.This was a strategy to eliminate e actually competitors so they were obviously not perfectly competitive, thitherfore their case involved imperfect competition. Microsofts monopoly was saved by the applications barrier to entry so many competitors feared to try to enter the market.Microsoft also had the ability to summation their prices above marginal costs without losing many customer s so they were the price makers, and they also had market power. With that being said, or so people may say that Microsoft was a pure monopoly be mother they were the sole producers of the computer software market and in that respect were no close substitutes. On the other(a) hand, some may say that Microsoft was a natural monopoly because they bring in their powerful position by over driving their free market competitors.Before Microsoft grew so big, there were some economic observers that claimed that economies of scale would give Microsoft an unassailable lead that would result in monopoly. (Economides, 2003) I harbor that Microsoft was trying to gain monopoly power in the computer software industry due to all of the evidence. Microsoft completely dominated the computer software industry for which they had great strategies to do so. Monopolies can cause many ban effects on our economy such as higher prices, less jobs, it can put other companies out of business, and it can cause producers to be intimidated to enter the same industry. Monopolies can also cause productive inefficiency, allocated inefficiency, diseconomies of scale, and x inefficiency. However, a monopoly can be a acceptable thing, especially for a business. cosmos the leader or the giant of a particular industry can make owners, managers, and employees feelvery secure with their company. Although a monopoly can cause overpricing, it can also cause price reduction for which would cause other companies to not be able to compete. A monopoly can also be a good thing because the high profit can be used to fund research capital enthronisation spending. Lastly, economies of scale, international competition, and they have the power to be the price makers.