6:54 KB/S PRELIM EXAM ANSWER DILIGENTLY THE FOLLOWING QUESTIONS/ CASE ANALYSIS: 1. THE ECONOMIC WAY OF THINKING IS TO RECOGNIZE THAT PEOPLE ARE SELF-INTERESTED AND AS A RESULT, DO THINGS THEY EXPECT WILL MAKE THEM HAPPIER. PEOPLE COMPARE COST AND BENEFIT OF SOME ACTIVITY. EXPLAIN AND DISCUSS WHY IS IT THAT INCREMENTAL OR ADDITIONAL COST AND MARGINAL BENEFITS ARE IMPORTANT IN DOING ANY SORT OF ACTIVITIES? 2. CASE ANALYSIS 1: THE JUSTICE DEPARTMENT OF THE UNITED STATES FOUND THE MICROSOFT CORPORATION IS GUILTY OF ATTEMPTING TO MONOPOLIZE THE PERSONAL COMPUTER OPERATING SYSTEM AND APPLICATION MARKET. THE CLAIM WAS THAT THE MICROSFT ACTED UNFAIRLY TO ATTEMPT TO BE THE ONLY FIRM SELLING AN OPERATING SYSTEM; THAT IS, MICROSOFT ACT ED UNFAIRLY TO BECOME A MONOPOLY. a. WHAT IS THEN A MONOPOLY? b. WHY AND HOW DOES GOVERNMENT CALL IT ILLEGAL? 3. CASE ANALYSIS 2: IN 1995 AIKO MORITA, THE FOUNDER OF SONY CORPORATION BEGAN SELLING TRANSISTOR RADIO IN THE UNITED STATES. "I SAW THE U.S. A NATURAL MARKET", HE THOUGHT FOR HIMSELF. MORITA SHOWED THE RADIO TO BULOVA, A LARGE WATCH AND APPLIANCE FIRM. BULOVA OFFERED TO PURCHASE A HUGE AMOUNT OF RADIOS BUT WITH ONE CONDITION. SONY WOULD HAVE TO PUT BULOVA'S NAME ON THE RADIO, SONY WILL BE A SO CALLED OEM (ORIGINAL EQUIPMENT MANUFACTURER) SUPPLIER. MORITA REFUSED, STATING THAT IN A FEW YEARS, THE NAME SONY WOULD BE AS WELL KNOWN AS BULOVA. SONY SOON RECEIVED ANOTHER LARGE PURCHASE OFFER, NEARLY 100,000 RADIOS FROM THE SAME COMPANY. QUESTION: WOULD MR MORITA ACCEPT THE OFFER? WHY