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Some economists argue that Microsoft become a monopoly in the market for computer software by ...

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Some economists argue that Microsoft become a monopoly in the market for computer software by ...

Question 1.

By the 21st century few people purchased printed encyclopedias. Which of the following competitive forces best explains this?

▸

the bargaining power of suppliers

▸

the bargaining power of buyers

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the threat from potential entrants

▸

competition from substitutes

Question 2.

Some economists argue that Microsoft become a monopoly in the market for computer software by developing MS-DOS, an operating system used for the first IBM personal computers. The more people who used MS-DOS-based programs, the greater the usefulness of a using a computer with an MS-DOS operating system. The explanation for Microsoft's monopoly is

▸

control of a key resource which, in this case, is the MS-DOS operating system.

▸

the development of new technology that other firms could not copy.

▸

patents Microsoft obtained when it developed the MS-DOS operating system.

▸

network externalities.

Textbook

InMicro

Edition: 1^st

Authors: Hubbard, O'Brien

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