Key Concepts: The Market Structure of Monopoly, The Demand Curve Facing a Monopoly Firm, Profit Maximization, Price Discrimination, Comparison of Perfect Competition and Monopoly

U.S. Department of Justice—Microsoft Market Share Projection

Review the "Exhibit 1" evidence presented by the U.S. Department Justice during the Microsoft "antitrust" trial to convince the federal judge that Microsoft was a monopoly.

• Is Microsoft Corporation a monopoly? What potential barriers to entry may exist? (Hint: visit www.Microsoft.com)
• Review the Federal Court ruling on the existence of "barriers to entry." Explain how monopolies can earn "above-normal" profit.
• Enter "Microsoft" in the "Search the Site" box at opensecrets.org and access the related documents. Explain why Microsoft spends millions of dollars in political contributions (Hint. Consider rent seeking).