Systems competition reasoning would suggest that when setting prices of its operating systems, Microsoft need not consider the profitability of PC manufacturers who purchase Microsoft Windows to install on their PCs.

Question

Quizplus · Accepted Answer

Systems competition reasoning actually implies that Microsoft must consider the profitability of PC manufacturers when setting prices for its operating systems, as the demand for Windows is directly affected by the health and competitiveness of the PC manufacturers. If the prices are too high, it could reduce the manufacturers' margins, potentially decreasing their demand for Windows or pushing them towards alternative operating systems.

Systems Competition Reasoning Would Suggest That When Setting Prices of Its