Firms Continue to Produce (Illegally) Counterfeit Computer Software and Documentation

question 120

Multiple Choice

Firms continue to produce (illegally) counterfeit computer software and documentation. Some of the illegal copies are Microsoft products, though Microsoft still has a large share of the market for its products. The presence of enforced copyright protection laws indicates that the market for Microsoft software cannot be considered a competitive market because:

• A) the products of pirates are not identical to those of Microsoft.
• B) pirate producers are not profit-maximizing entrepreneurial firms.
• C) buyers are not price takers.
• D) there are significant barriers to entry.