Microsoft is one of the leading software companies. Prior to 2000, Microsoft’s share of the market for personal computer operating systems stood above 80 per cent. However, since the twenty-first century Microsoft’s market share has steadily declined to 40 per cent. This is due to the rise in competing software producers such as Apple macOS (10%), Google's Android OS (35%), Linux Operating System (35%), and Apple iOS (5%). The market share of each company is provided in parentheses. Google and Linux have decided that it would be in their best interest to work together to serve the market. This is not common knowledge to the person’s outside of the companies. State what market structure existed prior to the 2000 and illustrate how equilibrium price and quantity are determined in this industry. Can excess profit be earned by Microsoft in the long run prior to the 2000. Explain. [3 marks] State what market structure exists in the twenty first century. Explain if excess profit will exist in the long run. State the type of arrangement made between Linux and Google. How will this impact (i) the companies and (ii) the market? State and explain one policy each that the government can put in place to benefit the market (i) prior to 2000 and ii) presently.
Microsoft is one of the leading software companies. Prior to 2000, Microsoft’s share of the market for personal computer operating systems stood above 80 per cent. However, since the twenty-first century Microsoft’s market share has steadily declined to 40 per cent. This is due to the rise in competing software producers such as Apple macOS (10%), Google's Android OS (35%), Linux Operating System (35%), and Apple iOS (5%). The market share of each company is provided in parentheses. Google and Linux have decided that it would be in their best interest to work together to serve the market. This is not common knowledge to the person’s outside of the companies. State what market structure existed prior to the 2000 and illustrate how
Can excess profit be earned by Microsoft in the long run prior to the 2000. Explain. [3 marks]
State what market structure exists in the twenty first century. Explain if excess profit will exist in the long run.
State the type of arrangement made between Linux and Google. How will this impact (i) the companies and (ii) the market?
State and explain one policy each that the government can put in place to benefit the market (i) prior to 2000 and ii) presently.
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