THE QUESTIONS a. Is Microsoft a natural monopoly or a legal monopoly? b. Does Microsoft price discriminate or do the different prices of Windows reflect cost differences? c. Sketch a demand curve for Windows, Microsoft's marginal cost curve, and the distribution of the total surplus between consumers and Microsoft.

Database System Concepts
7th Edition
ISBN:9780078022159
Author:Abraham Silberschatz Professor, Henry F. Korth, S. Sudarshan
Publisher:Abraham Silberschatz Professor, Henry F. Korth, S. Sudarshan
Chapter1: Introduction
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THE QUESTIONS
a. Is Microsoft a natural monopoly or a legal monopoly?
b. Does Microsoft price discriminate or do the different prices of Windows reflect cost
differences?
c. Sketch a demand curve for Windows, Microsoft's marginal cost curve, and the
distribution of the total surplus between consumers and Microsoft.
Transcribed Image Text:THE QUESTIONS a. Is Microsoft a natural monopoly or a legal monopoly? b. Does Microsoft price discriminate or do the different prices of Windows reflect cost differences? c. Sketch a demand curve for Windows, Microsoft's marginal cost curve, and the distribution of the total surplus between consumers and Microsoft.
Q4.
A. Microsoft Windows 8 to Go on Sale in October. Microsoft announced that its
Windows 8 operating system will be released in October 2012, three years after
Windows 7 went public. Windows 8 will be available in 109 languages across 231
markets worldwide.
Source: AFP, July 9, 2012
SOME DATA
Microsoft Windows 8 Versions and U.S. Prices
Version
Price
Full from Microsoft
249.99
Upgrade from Microsoft
199.99
Full from Amazon
162.99
OEM
148.95
Student from Microsoft
69.99
Microsoft sold l80 million Windows 8 licences at different prices in
different national markets.
Transcribed Image Text:Q4. A. Microsoft Windows 8 to Go on Sale in October. Microsoft announced that its Windows 8 operating system will be released in October 2012, three years after Windows 7 went public. Windows 8 will be available in 109 languages across 231 markets worldwide. Source: AFP, July 9, 2012 SOME DATA Microsoft Windows 8 Versions and U.S. Prices Version Price Full from Microsoft 249.99 Upgrade from Microsoft 199.99 Full from Amazon 162.99 OEM 148.95 Student from Microsoft 69.99 Microsoft sold l80 million Windows 8 licences at different prices in different national markets.
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