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CS101 Introduction to Computing GDB Solution Fall 2012

Microsoft have moved into many different area of computing, such as operating systems, application software, web-based software, search engine and more, so in this way it has been accused of monopolistic procedures. Do you agree with this accuse statement? Why or why not? Justify your answer with solid reasons.

Solution:

Microsoft Windows dominates the operating system market with 95% of the world’s computers running Windows. Linux and Mac operating systems account for just about the remaining 5%.

Cost: for example – although Linux is free to download the associated support costs mean that the total cost of ownership is high. Windows has the necessary tools and infrastructure to monitor, maintain, support, update, patch and protect the operating system as part of the cost. Productivity: Windows and Windows Server 2008 have features that enhance connectivity and productivity. Compliance: adhering to one standard is easier and tools such as BitLoader can encrypt data stored on the hard drive and removable media. Software: due to the dominance of Windows as a development platform means there is a huge choice of compatible software whereas Linux or Mac software is limited.
 


 
Apple is the world leader in terms of innovations and techniques, its far more bigger company than microsoft now,, apply holds about 50 percent of worlds mobile market share and about 25 percent of pc shares, microsoft holds about 30 percents of pc shares which included windows OS only, Microsoft did very well recently with windows8 mobiles and desktop OS, their tablet surface is also not bad, but its far behind Ipad, if u wanna blame market monopoly you can blame google for it, cause its restricting people to use its and only its technology, most of its techonology is related to each other, like search engines which always hows you the results of google affilitated or its sponsors sites first


The news has been filled with reports that Microsoft is a “monopoly.” What is the legal definition of a monopoly? I also read reports that suggest Microsoft has been played an important role in our current record-setting economic expansion. Even if Microsoft is a monopoly, what is wrong with that?

The United States economy is based on the presumption of a free market. This means that individuals and groups are free to do the work they choose to do, provide goods and services of their choosing and to spend money on the things they want. The government, for the most part, does not limit the range of goods and services available or set the prices that are charged for them. The amount of money an individual or business can charge for a product is set by the supply and level of demand for that product. Popular products that are scarce will have higher prices than unpopular and readily available products.

For the most part, the market produces economic outcomes that are efficient and fair. However, there are some instances in which the market fails. Economists generally include on the list of market failures monopolies, the under-provision of public goods, externalities, incomplete markets, information shortages and high unemployment and inflation rates.


When the market functions properly, competing individuals or businesses provide the same (or similar) goods and services to consumers. Because consumers have a choice, providers will lower their prices to win consumer dollars. The interplay of competition to supply a good or service and consumer demand for it will set a fair and efficient price in a free market. However, when there is no competition (and only one individual or business provides a good or service) the market cannot set an efficient price. In such instances, a monopoly is said to exist.

 

 

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