Microsoft faces very little competition from other firms for its Windows software. Why isn't the price of the software $1,000 per copy?
A)because the government would not allow such a high price
B)because stockholders would not allow such a high price
C)because the company would sell so few copies that they would earn higher profits by selling at a lower price
D)All of the above are correct.

Question

Quizplus · Accepted Answer

Microsoft sets the price of Windows software at a level where they can maximize their profits by selling the most number of copies possible. Setting the price too high would reduce demand, resulting in lower profits. The government does not regulate the price of Windows software, and while stockholders may not be pleased with lower profits, they would also not want to see the company lose market share by setting the price too high.

Microsoft Faces Very Little Competition from Other Firms for Its