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Comparing Microsoft And Standard Oil Companies

1149 Words5 Pages

In this paper I will be discussing what an imperfect competition is and what types of imperfect compeitions there are such as a monopoly. Monopolies are prime type of imperfect competition which have a lot of control over the market conditions. This paper will discuss examples of monopolies and a few I will highlight are Microsoft and the Standard Oil company. This paper will also highlight the implications created for the market, competition, and effects on the welfare of consumers.

An example of a monopoly is Microsoft's Windows operating system. Microsoft was accused of engaging in anti-competitive activities while dominating the market for personal computer operating systems in the late 1990s. Its integration of the Internet Explorer web browser with Windows resulted in high-profile antitrust litigation, showing the difficulties monopolistic activities in the computer industry (U.S. V. Microsoft, 1999). Microsoft held over 90% of the share of the market for Intel PC operating systems for a whole decade before the court decided that Microsft was infact a monopoly. With Apple's Mac OS included in the market, Microsoft still held over 80% of the market (U.S. V. Microsoft, 1999).

One of …show more content…

Standard Oil attained substantial control in the oil sector, Microsoft enjoyed a dominating position in the market for personal computer operating systems. Both businesses used aggressive tactics to drive out rivals and increase their market dominance. Standard Oil engaged in acquisitions and exploitative pricing techniques, whereas Microsoft combined its operating system and web browser. This reduced competition, made many question unethical activity, and ultimately resulted in legal action being taken against both corporations, showing the negative impacts of monopolistic behavior on the functioning of the market and the welfare of

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