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Is Microsoft a monopoly or oligopoly?

Is Microsoft a monopoly or oligopoly?

In both the software and computer products markets in which Microsoft finds itself, it operates within an oligopoly marketplace—a market that is dominated by several main, powerful businesses. This type of marketplace is not a monopoly, but the same strength is spread out between a few select competitors.

What kind of monopoly is Microsoft?

The software business is a natural monopoly business because average total costs continually decline with increased output. Therefore, if Microsoft could find a way to eliminate competition without having to compete on price, then profits would increase dramatically as Microsoft sold more software.

Why is Microsoft not a monopoly?

The first reason Microsoft is not a monopoly is because of the standardized quality of its OS. Second is the intelligent business practices Microsoft has engaged in through many of its business partners. The legal issues of the alleged antitrust accusations from the department of justice are just totally overrated.

When Microsoft became a monopoly?

It was Friday, Nov. 5, 1999 when then-Microsoft CEO Bill Gates got the bad news. Judge Thomas Penfield Jackson had declared that his company was a monopoly.

What happened to the Microsoft monopoly?

Microsoft was accused of trying to create a monopoly that led to the collapse of rival Netscape by giving its browser software for free. Charges were brought against the company which was sued by the Department of Justice in 1998. Microsoft appealed the decision, which was overturned.

What are some examples of a monopoly?

The following are examples of monopoly in real life.

  • Monopoly Example #1 – Railways.
  • Monopoly Example #2 – Luxottica.
  • Monopoly Example #3 -Microsoft.
  • Monopoly Example #4 – AB InBev.
  • Monopoly Example #5 – Google.
  • Monopoly Example #6 – Patents.
  • Monopoly Example #7 – AT.
  • Monopoly Example #8 – Facebook.

Is Luxottica a monopoly or an oligopoly?

That’s right, Luxottica, an Italian based eyewear company, produces about 70% of all name brand eyewear. This is fairly close to a monopoly, as with that high of a market share, Luxottica dominates the market price.

Why is Microsoft considered to be a monopolist?

Microsoft is widely regarded to be a monopolist company. This is because Windows, a product of Microsoft accounts for almost ninety percent of the operating systems market (Eisenhach and Leonard, 1999). Figure 1 shows the market behavior of a monopoly. Figure 2 Illustration of a Monopoly.

What are the characteristics of an economic monopoly?

According to Croteau and Hoynes (2006), the court cited three significant features of economic monopoly applicable to Microsoft’s case. First, Microsoft possesses a large and stable economic participation in terms of production, marketing and demand of digital products and software.

Why is Java a threat to Microsoft’s monopoly?

Obviously, Java is a direct threat to Microsoft’s Windows franchise and the power Microsoft derives from it, so Microsoft has done everything possible to undermine Java’s “write once, run everywhere” programming standards.

Is it illegal for a company to have a monopoly?

But not all monopolies are evil, let alone illegal. Some monopolies are ethical and perfectly legal because they obtain their market share by virtue of the utility of their products, the quality of their engineering, and the level of efficiency that they can deliver all of this with; simply being the best if you will.