. Since making an extra disk containing the program costs all of 2 cents, it is more costly for the software company to print the box and manuals, than it is to make one extra disk. But it does cost Microsoft to develop a new program. No matter how cheap a disk is, capital investment such as salaries, factories, storage, and programmers always exist. Even though development costs are sunk and additional production costs are nonexistent, other costs are incurred. Besides, supply and demand determines where a price will fall. Another thing about the computer market is its ever-changing program market. For all we know, anyone literate in programming may develop a better program than Windows. If consumers like it, we may soon find another browser monopolist. For reasons similar to this, computer industry leaders have vastly changed in just a few years. At times Apple, IBM, Intel, Netscape, AT&T and even Commodore, have or had large, sometimes monopolist-like markets. Characteristics of monopolies that cause trouble are (1) restriction of output, (2) higher prices along with this restriction, (3) restriction of entry to a particular market and, in a few cases, (4) lack of innovation due to lack of competition. Not a single one of these problems is experience with Microsoft. These problems are only drastic when an item is in a secluded market with no close substitutes. Computers are definitely not necessities and there are few barriers to entry in the computer market (the only noticeable being computer literacy). Microsoft certainly does not restrict output and hold prices at extreme levels. If they did, nobody would buy Windows 95 or 98 when it came out. There is no reason to buy an upgrade except that people are looking for something new or something bigger and better. New versions of Windows do not sell because consumers aren't forced to buy them. They sell because consumers want them. Many of Microsoft's major products are included with W...
