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Unformatted text preview: that the firm has decided to charge for its product. Microsoft is said to have a mo-nopoly in the market for Windows. Microsofts business decisions are not well described by the model of firm behavior we developed in Chapter 14. In that chapter, we analyzed competitive mar-kets, in which there are many firms offering essentially identical products, so each firm has little influence over the price it receives. By contrast, a monopoly such as Microsoft has no close competitors and, therefore, can influence the market price of its product. While a competitive firm is a price taker, a monopoly firm is a price maker. M O N O P O L Y...
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- Spring '10