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But it is not always clear what the long-term ramifications of breaking up large monopolies will be. For example, the breakup of Standard Oil resulted in several large oil companies, including Exxon and Mobil, which are now considering mergers with other oil companies. This research considers the market in which Microsoft competes, the type of competition within that market, and the microeconomic effects of breaking up Microsoft.
A monopoly is a market with a single seller. In this market, the monopolist company faces a downward sloping demand curve and is characterized as a price maker, meaning that the monopolist can charge any price along the demand curve because the company is the only vendor for the product...
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