Recall the application about Microsoft having a virtual monopoly in the market for personal-computer operating systems and business software.Which of the following best represents the way Microsoft keeps other firms from entering the market?

Question

Quizplus · Accepted Answer

Microsoft uses limit pricing to deter entry by setting prices lower than what potential competitors could make a profit at, making it difficult for new firms to enter the market. While Microsoft has acquired some small firms in the past, it has not bought out all potential competitors, nor does it have a patent that prohibits others from producing a similar product. Finally, Microsoft is not a pure monopoly as there have been attempts by other firms (such as Apple) to enter and compete in the market.

Recall the Application About Microsoft Having a Virtual Monopoly in the Market