One Proposed Remedy for the Microsoft Antitrust Case Is to Break

question 8

Essay

One proposed remedy for the Microsoft antitrust case is to break Microsoft into three equal parts and strictly prohibit any coordination between the parts.The three mini-Microsoft's would then compete with one another in both the operating system and applications markets.From a Systems Competition perspective, comment on how this proposed settlement might eventually affect consumers.

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Definitions:

MRP Schedule

A table showing the marginal revenue product (MRP) which is the additional revenue generated from using one more unit of a resource.

Perfect Competitor

A theoretical market structure where numerous small firms compete against each other and goods are perfect substitutes, leading to the inability of firms to influence prices.

Imperfect Competitor

A firm or entity that has the ability to influence the price of the goods or services it sells, due to the lack of perfect competition in the market.

Wage Rate

The fixed amount of compensation or payment given to an employee by an employer in exchange for work performed, typically expressed on an hourly, daily, or piecework basis.