Business Summary: Why Is Microsoft Monopoly?

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Why we say that Microsoft is a monopoly? Microsoft has been played an important role in our current record-setting economic expansion. Thus, the news has reports that Microsoft is a monopoly. At United States economy is based on a free market. This means that all the groups and individuals are free to do anything that they choose to do, providing goods and services of their choosing and spend their money on the things they want. For the most part, the government does not limit the range of goods and services available or set the prices that are charged for them. Depend on the supply and demand level of a product, the amount of money is set by individual or business. Hence, popular products that are scarce will have higher prices when compare…show more content…
On the other hand, there are still some instances in which the market fails. The list of market failures monopolies, the under-provision of public goods, externalities, incomplete markets, information shortages and high unemployment and inflation rates are usually included in economists. When the market functions properly, competing individuals or business provide the similar goods and services to customers. When customers have an option, providers will reduces their prices of their products to attract the customers. The interplay of competition to supply a good or service and consumer demand for it will set a fair and efficient price in a free and perfect competitive market. However, when there is only individual or business provides a good or service, the market cannot set an efficient or a fair price. In this case, a monopoly is said to…show more content…
The government had actually protected AT&T's market domination during the first half of the 20th Century because of AT&T's commitment to make telephone service universally available in the United States. However, by the 1980s, many critics argued that the company was so large and monopolistic that competition had been stifled and consumers were being deprived of choice in the long-distance telephone market. In response, the Courts forced a breakup of the company into seven regionally based "Baby Bells" (Southwest Bell, Southern Bell, etc.).The AT&T case is similar to the Microsoft case in one very important respect. The early Antitrust laws in the United States were motivated by consumer protection. Recent applications of the law, however, have been more focused on providing opportunities for other businesses and corporations to compete with large monopolistic companies such as AT&T and Microsoft. In the AT&T case, and in the Microsoft case, potential competitors have played the leading role in legal challenges, with consumers as the supporting
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