Discussion on monopoly and demand curve

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Microsoft Corporation has monopoly power. It is a monopoly.

Respond to the above statement either agreeing or disagreeing. Your personal opinion is welcome, but use concepts, theory and empirical information presented in the reading and outside research to support your position.

If a company believes that it is facing a "kinked" demand curve, what assumptions is it making about its rivals' reactions to its own price changes? How would the firm react to changes in its product costs?

Give some examples of a company or industry that might have a "kinked" demand curve. How do you think they should deal with it?

Reference no: EM1376998

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