None Provided14 Essay Example For Students

None Provided14 Essay According to Webster , to have a monopoly is to have exclusive ownership, possession, or control. The following essay is an examination of Microsoft in comparison to this definition and another commonly known monopoly, Standard Oil. Also attention will be given to the necessary role of and problems with monopolies. Competitive Market vs. Monopoly A competitive market consists of many buyers and sellers. Markets thrive because an equilibrium price is established through natural competition and no single buyer or seller can affect that price. Instead both buyer and seller must take the price given by the market based on the dynamics of supply and demand. This competition is healthy and necessary to the economy because it regulates price, production, promotes and motivates innovation and improvement. In comparison, a monopoly dictates its price and quantity based on demand. It has the potential to influence prices and does so to increase profits. Regarding production, a monopolist produ ces below the demand curve in order to charge higher prices to consumers. Less production and higher prices clearly illustrate the inefficiency of a monopoly and the harm it may cause to the economy. The Sherman Anti-Trust Act of 1890 In order to prevent a handful of monopolies and trusts (another form of monopolization) from controlling the economy, Congress passed the Sherman Anti-Trust Act of 1890. Signed into law by President Benjamin Harrison on July 2, 1890, the law consists of two sections. Section 1 primarily prohibits any contract or action whose aim is an unreasonable restrain on trade or commerce. Violates of Section 2 result from misuse or abuse of market power in order to gain or maintain a monopoly. Such actions generally target existing competition or prevent the rise of future competitors. Some examples of such actions are refusal to sell to a particular customer in order to eliminate competition, lowering prices below cost (price war), and contracts that close chann els of distribution or supplies to competitors. Though its interpretation is not particularly clear, The Sherman Anti-Trust Act is the standard used for determining trade misconduct and violates. Standard Oil January 2, 1882 marked the formation of the Standard Oil Trust. It was the invention of attorney Samuel Dodd and fueled by the control of John D. Rockefeller. Rockefeller began by concentrating on the refining business. He then expanded to other aspects of the oil industry to include extraction, sales, transportation, research, marketing even to the point of barrel manufacturing. The practices that brought Standard Oil to its peak became the evidence of its demise. Rockefeller kept a low profile on his company earnings and hid the profits by reinvesting. Other acts were more covert and damaging. Standard Oil had agreements with the railroads in which the railroad provided not only a lower transportation price but also gave a Standard Oil a kickback from the higher prices charge d to competitors. The railroad also provided information regarding competitors shipments. This greatly aided Standard Oil in its ability to wage lengthy price wars undercutting the competition. Prices were then raised high enough to maximize profit without attracting new competitors. Also reported were acts of sabotage and bribery. When pipelines became a threat to Standard Oil, Rockefeller bought land to intercept piping routes. Standard Oil continued its consolidation and eventually made any form of a competitive challenge impossible. In 1906, the federal government launched a lawsuit against the Standard Oil Trust based on its practices and abuses. In 1911, Standard Oil was found in violate of the Sherman Anti-Trust Act of 1890 and was soon dismantled. Microsoft Software is to the information age as oil was to the industrial age and as Standard Oil represented its industry so stands Microsoft nearly one hundred years later. Founded in 1975 by Paul Allen and Chairman Bill Gates, M icrosofts Windows operating system is currently being used on 90 percent of the worlds personal computers. As early as 1989, The Federal Trade Commission began an antitrust investigation of Microsoft. The agency alleged that Microsofts pricing policies illegally constrained competition and that it deliberately placed programming codes in its operating system to hinder competing applications. In 1994, though Microsoft claiming it had done no wrong, reached an agreement. The basis of which Another John F Kennedy EssayIt is easy to see that 1 pair will be produced the first month, and 1 pair also in the second month (since the new pair produced in the first month is not yet mature), and in the third month 2 pairs will be produced, one by the original pair and one by the pair which was produced in the first month. In the fourth month 3 pairs will be produced, and in the fifth month 5 pairs. After this things expand rapidly, and we get the following sequence of numbers:1, 1, 2, 3, 5, 8, 13, 21, 34, 55, 89, 144, 235, This is an example of recursive sequence, obeying the simple rule that two calculate the next term one simply sums the preceding two. Thus 1 and 1 are 2, 1 and 2 are 3, 2 and 3 are 5, and so on. (page 1)Leonardo Fibonacci was a mathematical genius of his time. His findings have contributed to the methods of mathematics that are still in use today. His mathematical influence continues to be evident by such mediums as the Fibonacci Quarterly and the numerous i nternet sites discussing his contributions. Many colleges offer classes that are devoted to the Fibonacci methods. Leonardos dedication to his love of mathematics rightfully earned him a respectable place in world history. A statue of him stands today in Pisa, Italy near the famous Leaning Tower. It is a commemorative symbol that signifies the respect and gratitude that Italy endures toward him. Many of Leonardos methods will continue to be taught for generations to come. Fibonaccis Mathematical Contributionswww.ee.surrey.ac.uk/personal/R.Knott/Fibonacci/fibBio.html (Feb. 10, 1999)www.mathacademy.com/platonic_realms/encyclop/articles/fibonac.html (March 23, 1999)Bibliography:Works CitedDr. Ron KnottFibonaccis Mathematical ContributionsMarch 6, 1998www.ee.surrey.ac.uk/personal/R.Knott/Fibonacci/fibBio.html (Feb. 10, 1999)Mathematics Encyclopediawww.mathacademy.com/platonic_realms/encyclop/articles/fibonac.html (March 23, 1999)