How has the European Union differed from the United States in the treatment of a monopoly? Consider the treatment of Microsoft

What will be an ideal response?

In 2000, Microsoft was charged with being an illegal monopoly. Although a district court ordered it to be broken up, the structural remedy was not used and the court directive was overturned on appeal. In its place a behavior remedy was adopted whereby Microsoft was prohibited from engaging in selected anti competitive practices. In Europe in 2004, however, Microsoft was fined and required to share its computer code with other firms that supplied Windows applications. Microsoft was fined again in 2008 for failing to quickly comply with the 2004 EU ruling.

Economics

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Although firms earn zero profits in the long run, why is the outcome from monopolistic competition considered to be inefficient?

A) Price exceeds marginal cost. B) Quantity is lower than the perfectly competitive outcome. C) Goods are not identical. D) A and B are correct. E) B and C are correct.

Economics

If the marginal propensity to save (MPS) is 0.10, the value of the spending multiplier is:

a. 1. b. 9. c. 10. d. 90.

Economics