Characteristics of Monopoly:

Price Control: In a monopoly, on account of a single market entity controlling supply and demand, degree of price and supply
control exerted by the enterprise or the individual is greater. The absence of competition spares the monopolizing company
from price pressure. Nevertheless, to evade the entry from new market participants, the company needs to regulate the set
product or service price within the paradigms of the Monopoly Theorem. Monopoly has scope for entrepreneurship to make
available limited goods and/or services at a higher price. The price and production decisions of such firms target profit
maximizing via predetermined quantity choice. This helps to cut even on the marginal and revenue outcomes. 

Increased Scope for Mergers: In a monopoly, due to the dictates of a single entity, scope for vertical and/or horizontal
mergers increase. The mergers take on coercive form to effectively blot out competitors and carry on supply chain management. 

Legal Sanctions: Competition laws restrict a monopoly with regards to the extent of dominant position held and exhibit of
illegal and abusive behavior. This is, however, milder in the case of a government-granted monopoly. Such a legal monopoly is
offered as an incentive to a risky, domestic venture. 

Predatory Pricing: This feature of monopoly benefits the consumers. These are short term market gains when prices drop to
meet scarce demand for the product. The suppliers and direct consumers benefit from the monopolizing company's attempt to
increase sale for business marketing. This kind of pricing also helps the government to step in and address any unregulated
monopoly. If the predatory pricing is not managed efficiently, the monopoly environment could be split. 

Price Elasticity: With regards to the demand of the product or service offered by the monopolizing company or individual, the
price elasticity to absolute value ratio is dictated by price increase and market demand. It is not uncommon to see surplus
and/or a loss categorized as 'dead-weight' within a monopoly. The latter refers to gain that evades both, the consumer and the
monopolist.

Lack of Innovation: On account of absolute market control, monopolies display a tendency to lose efficiency over a period of
time. With a one-product-shelf-life, innovative designing and marketing techniques take a back seat. 

Lack of Competition: When the market is designed to serve a monopoly, the lack of business competition or the absence of
viable goods and products shrinks the scope for 'perfect competition'. 

Monopoly Litigation: Lack of competition does not eliminate consumer dissatisfaction. High market share results in
consumers defying increased prices and welcome new entrants to the seller's market. Competition law dictates are designed to
pronounce a monopoly illegal, if found to be abusing market power via practices of exclusionary nature. The law addresses
abusive conduct in the form of product tying, supply cuts, price discrimination and exploitative deals.

Introduction to monopoly

Jist of the case

Relating case to monopoly

Current situation
Markrts

 Operating system markets

 Internat browser market

 Every pc is compatible with windows

Microsoft monopoly

Entries to barrier

- Many software applications have to run on the operating system to make it attractive to
the customers

- Time consuming, expensive.

- Difficult to make an alternative operating system

Threats

New software products that would support other operating system

Internet browsers like netscape would act as a platform where diff application can run in any
operating systems.

 Mirosoft