Economics (McConnell) AP Edition, 19th Edition

Chapter 10: Pure Monopoly

Web-based Questions

1
Is Microsoft a monopoly—What did the courts conclude? In 2002 a U.S. court of appeals imposed remedies relating to a lower court's findings that Microsoft had a monopoly in personal computer (PC) operating systems and had maintained its monopoly through illegal actions. At the U.S. Justice Department's Web site, www.usdoj.gov, use the DOJ Agencies listing to find Antitrust Division and then Antitrust Case Filings. Locate U.S. v. Microsoft and select District Court filings and then Court's Findings of Fact (11/5/99). On what basis did the court conclude that Microsoft was a monopoly (see Market Share)? What was Microsoft's market share of Intel-compatible PC operating systems? Of all operating systems, including those of Apple computers? What -evidence did the court cite in claiming that Microsoft charged above-competitive prices (see Microsoft's Pricing Behavior)?
2
Getting to know your state regulatory commission Go to www.yahoo.com or some other standard search engine and type "public utility commissions" in the search box. Find the utilities commission for the state where you reside (or another state if you cannot find the Web site for your state commission). What industries does the state commission regulate? How many specific firms are registered or regulated? List the names of 10 such specific firms. Why are these and the other firms regulated?
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