Some economists argue that Microsoft become a monopoly in the market for computer software by developing MS-DOS, an operating system used for the first IBM personal computers. The more people who used MS-DOS-based programs, the greater the usefulness of a using a computer with an MS-DOS operating system. The explanation for Microsoft's monopoly is
A) the development of new technology that other firms could not copy.
B) control of a key resource which, in this case, is the MS-DOS operating system.
C) network externalities.
D) patents Microsoft obtained when it developed the MS-DOS operating system.

Question

Quizplus · Accepted Answer

Network externalities occur when the value of a product increases as more people use it, which was the case with MS-DOS, as its widespread use made it more valuable.

Some Economists Argue That Microsoft Become a Monopoly in the Market