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Firms Continue to Produce (Illegally) Counterfeit Computer Software and Documentation

Question 6

Multiple Choice

Firms continue to produce (illegally) counterfeit computer software and documentation. Some of the illegal copies are Microsoft products, though Microsoft still has a large share of the market for its products. The presence of enforced copyright protection laws indicates that the market for Microsoft software cannot be considered a competitive market because:


A) the products of pirates are not identical to those of Microsoft.
B) pirate producers are not profit-maximizing entrepreneurial firms.
C) buyers are not price takers.
D) there are significant barriers to entry.

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