In the late 1990s, economists at Microsoft estimated that given that the company held a near-monopoly with

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In the late 1990s, economists at Microsoft estimated that given that the company held a near-monopoly with its Windows operating system—and a computer can’t work without an operating system—it could exploit this market power and earn the largest possible profit it if charged about $1,800 per copy of Windows. However, Microsoft priced its operating system at an average price of $40 to $60 per copy. Which of the five forces might Microsoft have been responding to in order to justify this pricing strategy? Briefly explain your reasoning.

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