Operating system Essay Example for Free

Operating musical arrangement EssayAs an American multinational corporation, Microsoft is regarded as the largest softw ar product maker measured by revenue in the software market. However, because Microsoft play an apparently dominate region in the market, to a greater extent than and more people argue that Microsoft have made damage on con center fielders lolly through some trade methods. As we know, Microsoft has been accused of being a monopoliser by the just department in US and Europe for almost everyplace ten years.Microsoft possesses (and for several years has possessed) monopoly violence in the market for personal calculator operating systems the Justice Department declared blatantly in 1988. This paper will examine and analysis the reason why Microsoft is a monopoly, eudaimonia implications as a monopoly and whether the presidential term regulations is successful. Microsoft Corporation products a wide range of products relate to computing. If Microsoft produ cts are divided into five parts, they are Windows, Office, Business solutions, Developers IT pros and some other products standardised Windows ph one(a)s, Internet explorer.From now, Microsoft plays a dominate role both in PC operating system and office slipe system. According to the annual report of Microsoft in 2012, over 50% of enterprise desktops PCs run Windows 7 and Office is now installed on over 1 billion PCs is reported. This large company own approximately 94,000 employees and the revenue in 2012 by June 30 is 73,723 million. Why the Microsoft cooperation is a monopoly? Microsoft monopoly is self evident if Justice Departments lawyers are to be believed, as demonstrated by McKenzie Richard B and Shughart II William F (1998).As the largest software company, produces products which is popular with people, there is no doubt that Microsoft is a significant enemy to other companies who produce the similar products. Even though there are more and more companies can become str ong competitor like Apple Mac and Linux which are hypernym to Windows system in some areas ,the percentage they make up can not be compared with Microsoft, Microsoft quiet down play a dominate role in the market. A monopolist is defined as a monopoly occurs when the verbotenput of an entire industry is produced and sold by a single firm.(Microeconomics, Christopher T. S. Regan Richard G. Lipsey p218). As we know, Bill provide has made his Windows operating system become almost the only access to Internet. Moreover, Microsoft was being accused of three specific charges about Microsofts illegal behaviors by Justice Department on May 5. The frontmost one is the agreements contract draw up by Microsoft. For example, Microsoft deposit consumers use their other products when they are use windows systems like when users use windows system they are required to install Internet Explorer.The second one is the exclusionary contracts which bastardly that Microsoft try to prevent other products from competitors and potential competitors used and developed by other companies. The last one is that those exclusionary contracts attribute to curbing the competitors right of supporting their products and services. Those accuses of Microsoft reflect Microsoft is using its ubiquitous marketing office to squash their competitors and break the market balance. As a monopolist, it controls determine of products.Sales can increase only if price is reduced, and price can be increased only if sales are reduced. For meter of outputs, it is determined by marginal cost and marginal revenue. When marginal cost equals marginal revenue and the price is larger than marginal cost, the profit of Microsoft is maximizing. (Regan Christopher, 1982, Microeconomics-12th edition) If the good and service were delivered in a absolutely competitive market, consumer purpose slight will increase and producer surplus will decrease.A perfectly competitive industry produces a level of output tha t the price equals marginal cost while a monopolist produces a trim down level of output and price exceed marginal cost. Whats more, each firm in perfectly competitive market has a horizontal demand curve and the supply curve is the horizontal sum of many marginal cost revenues. the price in a competitive is smaller than in a monopoly because the demand curve is below the marginal revenue curve. Consequently, consumer surplus increase and producer surplus decrease. If the government regulates Microsoft effetely, the prices of Microsoft products will decrease.As we can see from the graph, when prices decrease, quantities increase, consumer surplus increase, producer surplus decrease, deadweight loss decrease. Thus, economic welfare increases. Since the government makes some measures to curb the development of monopolists, monopolists marketing power may more or less is influenced. For instance, after the most famous monopoly company-John D. Rockefellers standard Oil Trust, the compa ny was broken up in the 19th. Similarily, the Justice Department continually sue monopolists or near monopolists like ATT and IBM, including Microsoft.After Microsoft was accused by European antitrust institution in 2004, the normal Microsoft market was being disturbed. Microsoft had to secern windows media player from windows system when sell their products. Even though the antitrust accuse has influences on the marketing of Microsoft, the revenue of Microsoft is not influenced by the charges after 2011. According to the annual report of 2004 and 2005, the revenue change from $759 in 2004 to $803 in 2005. The statistic prove that the power of Microsoft can never be ignored in computer market.However, the antitrust can not be said it does not influence Microsoft. After being accused, Microsoft regards the possible break up of the company as a serious threat. At the same time, Apple becomes more and more popular in computer marketing as a tremendous competitor. Bring an antitrust su it against Microsoft. A government suit would have an immediate, positive effect on other software companies by causing Microsoft to become more cautious and self-controlling just as IBM did in the 1970s ,suggested by Goetz, Martin A in Jun 19,1995.The government should cut through exerting pressure on Microsoft and let Microsoft adjust itself. Furthermore, the government should also require Microsoft operating its market with separate partitions to decrease its marketing power. For example, Microsoft should operate its Network Service Division as a separate section rather operating with other products and continue monitoring weather Microsoft force consumers install other products like media player and Internet Explore when they use Microsoft system. Lastly, the software market is changeable compared with other markets.The technique is changing every day it is difficult for a company dominating the whole market for a eagle-eyed term. Microsoft can not guarantee their products c an always be popular with consumers. The government should strengthen the force on Microsoft market and let Microsoft self-regulating.References Microsoft annual report of 2012 http//view. officeapps. live. com/op/view. aspx? src=http//www. microsoft. com/investor/reports/ar12/docs/2012_Annual_Report. docx McKenzie Richard B Shughart II William F (1998), Is Microsoft a monopolist? http//web. ebscohost. com/ehost/detail?vid=13hid=13sid=cb822f92-5712-487e-91af-94eea12c3fb3%40sessionmgr11bdata=JnNpdGU9ZWhvc3QtbGl2ZQ%3d%3ddb=aphAN=1190614 Regan Christopher (1982), Microeconomics-12th edition.HarperCollins Publishers P218, P222 Microsoft annual report of 2004 and 2005 http//www. microsoft. com/investor/reports/ar05/staticversion/10k_dl_dow. html http//www. microsoft. com/investor/reports/ar04/nonflash/10k_dl_main. html Goetz, Martin A (Jun 19, 1995), Is Microsoft out of control? The government has to stop Microsoft now http//search. proquest. com/docview/216031454? accountid=13908.