Microsoft Corporation as an Example of a Monopoly Assignment

Microsoft Corporation as an Example of a Monopoly - Assignment Example The author of the paper states that as a protagonist of monopoly championed this practice for cartels as they maintain that its existence leads to an increase in the number of research and development projects as they earn more profits. Although, the companies operate solely in the market and get the high return it does not invest the funds for research and development. Microsoft Corporation as an example of a monopoly has not shown considerable investment in the field of research and development as thought (Jones and Sufrin 573). On the contrary, as a result of obtaining patent rights companies that operate under monopoly, including Microsoft do not have any incentives to innovate other new varieties of products that specialize in the one. Because of these, many countries impose a limit on the number of years companies can hold to their patent of rights (Salanià © 188).  Microsoft’s research and development is mainly because of its competitors but once these competitors wh o operate server operating system market stops Microsoft Company will also no longer see the benefit of carrying out more research and development as it has already come up with a lock-in effect strategy on its customers. Through this strategy, Microsoft can effectively engage its customers in homogenous solutions made by Microsoft worldwide. It is, therefore, definite that monopoly companies do not wish to spend the large amounts of profits it accumulates in research and development. Without a doubt, these monopoly companies would be adamant to produce only those products that are conducive and acceptable to the consumer rather than being innovative and make new products for its customers.