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In a celebrated case tried during 1998, the department of justice charged microsoft corporation with a wide range of anticompetitive behavior. Among the charges leveled by the DOJ was the allegation that Microsoft Illegaly "bundled" the sales of its microsoft explorer with its basic windows operating system. DOJ alleged that by offering a free browser program, microsoft was able to extend its operating system monopoly and "substantialy lessen competition and tend to create a monopoly" in the browser market by undercutting rival netscape communitcations, Inc. Microsoft retorted that it had the right to innovate and broaden the capability of its operating system over time. Moreover, Microsoft noted that Netscape distributed its rival internet browser software netscape navigator free to customers, and that it was meerly meeting the competition by offering its own free browser program.
A. Explain how microsofts bundling of free internet browser software with its windows operating system could violate US antitrust laws, and be sure to mention which laws in particular might be violated.
B. Who was right in this case? In other words, did Microsoft's bundling of Microsoft Explorer with Windows extend its operating system monopoly and "substantially lessen competition and tend to create a monopoly" in the browser market?
Do you think the overall level of R&D would increase or reduce over the next 20 to 30 years if lengths of new patents were extended from 20 years to, say "forever"?
Use demand and supply analysis to illustrate the changes in chicken prices described in the article. Describe what has happened in the corn and soybean-meal markets and how that has influenced the chicken market.
Assume marginal cost increases to 25 as a result of imposition of a tax. What takes place to monopoly and competitive price and output?
Graph the demand and supply curves. What is the equilibrium price and quantity in this market and if the actual price in this market were above the equilibrium price, what would drive market toward the equilibrium?
Estimate the number of cups served per week and determine outlet demand curve. What would be the effect of a $5000 increase in the competitors' advertisement expenditure and outlet demand curve
An industry consists of three firms with sales of $200,000, $500,000, $400,000. Compute the Herfindal-Hirschmann index (HHI)
Explain the output and price effects which affect the profit-maximizing decision faced by the firm in oligopoly market. How does this differ from output and price effects in monopoly market?
What are the various methods of inventory valuation? Explain the effect of inventory valuation methods on profit during inflation. What are the provisions of Accounting Standard 2 (AS-2) with regards to inventory valuation?
Explain the difference between the demand curve facing the monopoly firm and demand curve facing the perfectly competitive firm.
The average 15-year old purchases 12 CDs and 15 cheese pizzas in the typical year. If cheese pizzas are inferior goods, would the average 15-year old be indifferent between receiving the $30 gift certificate at local music store and $30 in cash?
Future economic glowth
What business will you go into, and what will comprise your fixed and variable costs? How could your business take advantage of economies of scale?
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