We've been talking about costs and the competitive structure of markets. Competition is hard to...

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We've been talking about costs and the competitive structure of markets. Competition is hard to measure. When is an industry competitive and when is it monopolistic? Read the articles below about Google and its "monopolistic" tendencies. Answer the questions that follow.http://online.wsj.com/article/SB XXXXXXXXXXhtmlhttp://online.wsj.com/article/SB XXXXXXXXXXhtmlhttp://online.wsj.com/article/SB100014240527487041506 XXXXXXXXXX.htmlhttp://online.wsj.com/article/SB100014240527487041506 XXXXXXXXXX.html1) All of you have used Google.
	
Document Preview: We've been talking about costs and the competitive structure of markets. Competition is hard to measure. When is an industry competitive and when is it monopolistic? Read the articles below about Google and its "monopolistic" tendencies. Answer the questions that follow. HYPERLINK "http://online.wsj.com/article/SB XXXXXXXXXXhtml" http://online.wsj.com/article/SB XXXXXXXXXXhtml HYPERLINK "http://online.wsj.com/article/SB100014240527487041506 XXXXXXXXXX.html" http://online.wsj.com/article/SB100014240527487041506 XXXXXXXXXX.html1) All of you have used Google. Do you think it's anticompetitive? Why or why not?2) Do you feel you have a good substitute product for Google? Why or why not?3) Do you think the Antitrust Department should punish Google for being a "monopolist"? Did the authors of the articles think so? Explain.

David · Accepted Answer

Ques) We've been talking about costs and the competitive structure of markets. Competition is 
hard to measure. When is an industry competitive and when is it monopolistic? Read the articles 
below about Google and its "monopolistic" tendencies. Answer the questions that follow.
http://online.wsj.com/article/SB124156244115989189.html 
http://online.wsj.com/article/SB10001424052748704150604576166390281747136.html 
1) All of you have used Google. Do you think it's anticompetitive? Why or why not? 
2) Do you feel you have a good substitute product for Google? Why or why not? 
3) Do you think the Antitrust Department should punish Google for being a "monopolist"? Did 
the authors of the articles think so? Explain.
Ans 1) Google is indisputably a victim of its own success.Its market share of internet search has 
continued to rise steadily, encompassing roughly two –third of total searches.Its share of search 
advertising is even higher.The profit margins of Google are also quite high.It very clearly power 
that are evidence of high barriers to entry for others.For these reasons, in recent  years, it has 
faced government intervention including scrutiny by regulators of U.S. and Europe. 
I don’t really think that Google is anticompetitive.Google is a natural monopoly.

We've been talking about costs and the competitive structure of markets. Competition is hard to measure. When is an industry competitive and when is it monopolistic? Read the articles below about...

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