Firms want to have a monopoly or as much monopoly power as possible. (By Monopo

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Firms want to have a monopoly or as much monopoly power as possible. (By Monopoly power, I’m referring to the ability to control their price. After all, perfectly competitive firms can expect zero economic profit in the long run.)
Over the years, various products have been “given away” or “integrated” into other products as a way of using “predatory pricing” to keep competitors out of the market. One famous example was Microsoft trying to embed their Internet Browser (at the time, Internet Explorer) directly into Windows. That was an attempt to force their rivals (Netscape Navigator) out of the market. After all, if Microsoft gives away a product, how could other firms charge for the product? After the other firms exit the market, Microsoft’s incentive to improve their product diminishes, and they could then potentially charge monopoly prices for the product. This would not be good for consumers.
Identify other examples of predatory behavior or historical monopolies. Let’s show how often and in how many industries these issues arise. Be sure to include a source/link! Here’s an article that discusses the situation above. http://www.investopedia.com/ask/answers/08/microsoft-antitrust.asp
WARNING: The media uses the term Monopoly differently than we do in academics. The media uses it to mean a “big market player,” but we use it to indicate a market with only ONE firm. For example, while “Netflix” is very large, they’re NOT a monopoly (after all, there is Hulu, DisneyPlus, HBOMax, Peacock, AppleTv, etc.). We call a market with just a few big companies an Oligopoly – a market structure we cover next week. Be careful!

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