Research Paper: Monopoly Created by Microsoft

Sample Research Paper

The monopolist may decide to continue increasing the price by reducing the quantity it supplies, and thereby increase the Dead Weight Loss to society (“Monopolist”).  This is exactly why the U.S. Justice Department must intervene to put an end to monopolistic practices in favor of perfect competition.

     The Justice Department had claimed that if Microsoft were to gain a monopoly in the browser market, the consumers would be facing a loss in terms of increased prices and reduced supply.  Even so, Microsoft had not behaved as a traditional monopolist, that is, the company had not raised prices of its internet browser.  Microsoft actually gives its Internet Explorer away for free (“Microsoft”)!

The Justice Department had also argued that if Microsoft were to become a monopoly, innovation in the concerned market would be reduced.  In other words, competitors must be allowed to equally produce innovative solutions in the industry.  But if Microsoft’s creation becomes the dominant web browser, the company itself would have less of an incentive to create enhanced products in order to beat the competition (“Microsoft”).

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