Use American tobacco as an example

' Firms want to have a monopoly or as much monopObe . possible. (By Monopoly power. I'm referring to the arbilityto- Cont their price). After all, perfectly competitive firms can expect ze economic profit in the long run. A " ' . | ' '4 Over the years, various products have been "givn away" 'or ' ., "integrated" into other products as a way of using "predatory pr" keep competitors out of the market. - ' " One famous example was Microsoft trying to embed their Internet _ Browser (at the time, Internet Explorer) directly into Windows. That; was an attempt to force their rivals (Netscape Navigator) out of the -' market. After all, if Microsoft gives away a product, how could other" rms charge for the product? After the other firms exit the market, Microsoft's incentive to improve their product diminishes, and they could then potentially charge monopoly prices for the product. This would not be good for consumers. Identify other examples of predatory behavior or historical monopolies. Let's show how often, and in how many industries these issues arise. Be sure to include a source/link! Here's an article that discusses the situation above. _ http://wwwjnvestopedia.com/ask/answers/O8/microsoft-antitrustaso ' WARNING: The media uses the term Monopoly differently than we do in academics. The media uses it to mean a "big market player,\" but we use it to indicate a market with only ONE firm. For example, while "'Netflix" is very large, they're NOT a monopoly (after all, there is Hulu, W W Peacbck, W etc). We call a market with. .. just a few big companies an Oligopoly - a market structure we cover next week. Be careful! ' r21