ECONOMICS (CBSE/UGC NET)

Detailed explanation-1: -Microsoft is the most powerful organization in the market of computer-producing systems and maintained a monopoly in the world market. If Microsoft wants to use this ability to change the value of the product in the market, they can charge a higher price for a window that could be charged in a competitive market.

Detailed explanation-2: -A company has a technological monopoly when it controls specific manufacturing processes or has exclusive rights over key technologies that are crucial to making a product. Competitors can’t duplicate that. Drug companies are a good example.

Detailed explanation-3: -This leads to what is known as an economy of scale. Essentially, economies of scale mean that a large producer can either do it better or cheaper than a smaller producer, ceteris paribus. Microsoft provides the greatest example of a software company that holds a “natural monopoly” on its market.

Detailed explanation-4: -Findings of fact: Microsoft is a monopoly that hurts competition and consumers. As expected, Judge Thomas Penfield Jackson has found Microsoft to have monopoly power in the computer operating system market.