How does Microsoft relate to the overall definition of a monopoly?

Question

HELP!!
This is for a economics class. My instructor told me to start with the definition of a monopoly and then relate that to Microsoft.
Guys I've done the reading and am more confused then when I started. So any help or thoughts would be greatly appreciated.

Answer 1

Start with MSFT's key products- say Windows, Office, internet explorer, and X-Box)- and think about the key distinctions between monopoly and perfect competition.

barriers to entry
# of suppliers
price maker / price taker
Homogeneity of output
etc.

Since perfect competition and monopoly are are theoretical extremes, think about where on the continuum MSFT lies for each variable considered.

In addition, think about different defitions of "the market". For example, MSFT has a monopoly on the MS x-box. However, it is one of several gaming platforms available since it competes with the Wii, playstation, and game cube.

Answer 2

weel, do you undertsand what a monoploy is? Look up anti-trust. Microsoft had one of the largest anti-trust litigation of all time. I think in some aspects it may still be going on. This is a political issue, like free trade, some are against some are for. I am personally against it because it restricts true capitalism. It's like saying "be successful, but not too much" - this is ridiculous in my opinion. It's the government's attempt to intervene which it shouldn't in a free market; doing so inhibits the capitalism that helped it flurish in the first place. I think Microsoft should be left alone because the complaining companies that are whining monopoly should be forced to compete better. Although anti-trust say they cannot complete fairly, a true arguement for this has not been substantiated.

Answer 3

well, Microsoft is almost a monopoly - it makes the only user-friendly OS (Operating System) and suite of Office applications (text editing, spreadsheets, etc.)

You can argue that there is Linux and Apple, but Microsoft's share is so much larger that M$ can set any price it wants.

Answer 4

Very close, but monopolies may not always be bad.
Who is or can do it better?
Congress knows, or The Shadow Knows. (Ever hear of that show?)

Consider ATT. At one time they were the very best telephone service in the world.
SO, our congress decided that they were a monoply and broke them up, like from SWB.
Our telephone service became a piece of sh**.
Most still is.
NOW, recently, ATT bought SWB.

What the f***. Service was their middle name at the time. And we didn't have all the damn extra charges that Washington has imposed.
I'm back with ATT, by the way.

And I'm old.