Macro & Micro economics. Windows by Microsoft Essay

Macro & Micro economics. Windows by Microsoft - assay ExampleThe essay tries to focus in the exclusive monopoly power of the popular software company Microsoft. though very rare, business firms in the contemporary world often enjoy the power of a monopolizer seller (Chass, n.d.). A monopolist market structure is primarily characte repeald with a single seller and some(prenominal) buyers in the industry. The products produced by a monopoly seller may or may not be differentiated. It should be carefully analysed that since the monopoly seller is the only major producer in the market, it faces the entire market demand. Thus, the price or average revenue (AR) curve and the marginal revenue (MR) curve face by monopolists are endlessly negatively sloped. Figure1 AR and MR meander of a Monopoly Producer AR, MR Price or Average Revenue Curve (P or AR) Marginal Revenue Curve (MR) Quantity (Source Authors Creation) The above diagram shows the AR and MR curve faced by a monopolist. A monop olist seller is a price maker in the industry.... The policies of the regime in an economy are also influenced by the power and decisions of a monopolist in the market. Microsoft doings Microsoft Corporation is a famous American software company with its headquarters in Washington. At the contemporary market conditions, business firms can never imagine to operate without the use of computers. The rise in the take of literacy in both developed and developing economies have increased the use of computers for both commercialized and non commercial purposes with time. Most of the computers in the young world comprise of an operating system of Microsoft. Such technical products yield has made Microsoft behave like a monopolist in the market. In 4th April 2000, the Federal judicature claimed that Microsoft Corporation has violated the antitrust laws in the market. Antitrust laws are the laws set with the mixture of federal and farming government laws. The antitrust laws are stron gly implemented on all the business organizations in the modern world because such laws prevents the economy from the unfair trade practices of monopoly business firms and promotes competition in the economy. It is believed by economists and analysts that rise in market competition in the business segments would help to augment the net social upbeat in the economy (Manne, 2012). Bundling of Netscape and Media Player The Federal Justice department accused Microsoft Corporation for neutering the satisfaction of the consumers by shifting competition in the software marketplaces in particular with the disbursement of the Netscape browser. Microsoft coveted to bundle its business with the famous company of web browser Internet Explorer. The company