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(Solved): Read the two case-studies of Google and Microsoft (attached). a. Give TWO examples from (one from e ...
Read the two case-studies of Google and Microsoft (attached). a. Give TWO examples from (one from each article) of barriers to entry that tech companies like Google and Microsoft use to limit competition. b. How does a pure monopolist maximize profits in the short run? Explain clearly, and illustrate your explanation with a graph showing the monopoly firm's output and pricing decisions. (4 points) c. Given Google's near-monopoly of search engines described in the article, do you think the government should regulate Google? In your answer, clearly explain the arguments on both sides, and take a stand. (6 points)
Expert Answer
There are various barriers to entry that tech companies like Google and Microsoft use to limit competition, some of which are:1. High switching costs: These refer to the costs that a consumer or business would incur when moving from one company's products or services to another's. For example, if a business uses Microsoft's Office suite, it may be difficult and expensive to switch to Google's G Suite due to retraining employees, reconfiguring systems, and so on.