Student Solution

-->

"Education is the most powerful weapon which you can use to change the world”
– Nelson Mandela

1 University

1 Course

1 Subject

Principles of Microeconomics-Discussion (1)

Principles of Microeconomics-Discussion (1)

Q GRADED DISCUSSION WEEK 5 Please note that if you edit your initial response (Original Post), you will not get credit for the Original Post. The discussions are set up as "Must post first". In 2002 a U.S. court of appeals imposed remedies relating to a lower court’s findings that Microsoft had a monopoly in personal computer (PC) operating system and had maintained its monopoly through illegal actions. At the U.S. Justice Department’s Web site, www.usdoj.gov, Click on the Agencies on the top of the window, Click on Antitrust Division and then on website Click on Antitrust Case Filings Find U.S. vs. Microsoft case filings. Scroll down to District Court filings and find Findings of Fact In the list of Findings of Fact find Court’s Findings of Fact (11/5/99). In your initial response to the topic you have to answer all questions: 1. On what basis did the court conclude that Microsoft was a monopoly (see “Market Share”)? 2. What was Microsoft’s market share of Intel-compatible PC operating system? Of all operating system, including those of Apply computers? 3. What evidence did the court cite in claiming that Microsoft charged above-competitive prices (see “Microsoft’s Pricing Behavior”)? 4. Reflection – the students also should include a paragraph in the initial response in their own words reflecting on specifically what they learned from the assignment and how they think they could apply what they learned in the workplace. You are expected to make your own contribution in a main topic as well as respond with value-added comments to at least two of your classmates. You are encouraged to respond to other students as well as to your instructor.

View Related Questions

Solution Preview

A company has got the monopoly power when the company can control the price and quantity of the production only by itself. Microsoft produces the operating system and controls a large share of the market. The court concludes that the Microsoft was a monopoly after finding that the market share of Intel-based Microsoft is extremely large and stable, has an extremely high barrier to entry in their market and due to that, there is no notable competitor in the market.