Question: The Microsoft antitrust case covered in your textbook embodies many of the gray areas in restrictive practices. Antitrust regulators accused Microsoft of numerous offenses. What



The Microsoft antitrust case covered in your textbook embodies many of the gray areas in restrictive practices. Antitrust regulators accused Microsoft of numerous offenses. What was the end result? Microsoft appealed a federal court decision to break up the company and reached a settlement with the government that it would end its restrictive practices. Microsoft won and it's practices were not classified as restrictive. O The federal government regulators finally dropped their case because the case was too complex to prove, The federal government won its case, and Microsoft was broken into several smaller companies.Your textbook covered 4 possible ways to deal with a natural monopoly. Which approach would be best for consumers? Regulators would split the monopolist into two competing firms. O Regulators would allow the monopolist to continue with no government regulation. Regulators would force the monopolist to set its price equal to its marginal cost. Let the natural monopoly charge enough to cover it's average costs and carn a normal rate of profit.In cost plus regulation, regulators calculated the average cost of production, added in an amount for the normal rate of profit the firm should expect to earn, and set the price for consumers accordingly. In price cap regulation, the regulator sets a price that the firm can charge over the next few years. What is the problem of price cap regulation? O It will not work if the price regulators set new prices every six months. Low level managers will have too much power. It will not work if the price regulators set the price cap unrealistically low. It will cause long term certainty in the market
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