Differentiating between market structures, labor equilibrium, and public vs private goods encompasses vast quantity information. Public goods and private goods can be similar, however, they mostly diverge into very different directions. Labor market equilibrium, labor supply and demand must be maximized and evaluated to produce profits for any company. Microsoft owns an estimated 90 percent of the market when it comes to operating systems. Does this constitute a monopoly in the data-business world? A federal judge deems that Microsoft is indeed a Monopoly and controls entirely too much of the computer operating system market. Three main facts indicate that Microsoft enjoys monopoly power,” Jackson wrote. “First, Microsoft’s share of the market for Intel-compatible PC operating systems is extremely large and stable. Second, Microsoft’s dominant market share is protected by a high barrier to entry. Third, and largely as a result of that barrier, Microsoft’s customers lack a commercially viable alternative to Windows”. (Moore 1999) Microsoft is a business that provides software and operating systems for business servers, personal computers, laptops, and cellular telephones.
The company’s private goods include a line of software that can be purchased separate from their proprietary operating systems; Microsoft Word, Excel, and Outlook are software available in Microsoft’s popular Microsoft Office package. Microsoft’s operating systems are built to suit a child’s laptop all the way to a company’s mainframe database. Microsoft’s monopoly on software services for computers is not the company’s only services. Some common resources Microsoft shares with many companies are infrastructure design and architecture planning, network and computer services training, and technology consulting.
There are many companies worldwide that offer these type services. Microsoft’s operating systems competition in the marketplace includes Linux, Solaris, Unix, and Darwin – commonly known as Macintosh. Supply and demand is used in economics to measure price, want, and quantity. This is a tool used to assist at setting a price due to the quantity demanded, and how much product is to be supplied. This is needed in order to set equilibrium of labor markets. Labor markets focus on employers, employees, and the functions between them. To keep a balance in labor markets their needs to be a balance between supply and demand.
The amount of a product produced is measured by its want, if there is a want then there is also a need for laborers. These workers are affected by wages and hours, but because of the need for them then unemployment is not an issue. According to one economist, “if the amount of labor supply in the labor market is sufficient, then from the demand condition of the goods of both firms, a unique Cournot equilibrium is achieved. On the other hand, if the amount of labor supply in the labor market is insufficient, the firms cannot possibly produce the amounts in demand corresponding to the Cournot equilibrium. (Ohnishi, 2005, p. 267) The Cournot equilibrium or competition is an economic model that shows the output of companies in order to achieve maximum profit. Now that the employees are needed and have wages, they are more willing to go out and spend in our economy, which will then create a demand for supply. This is a method that goes full circle, each process feeds off the other. This is known as labor market equilibrium. The structure of monopolistic competition sets the table for competitors who produce substitutes such as clothing, brands of candy, automobiles, shoes, video games and many more.
Some of the elements that aid in identifying the monopolistically competitive markets are that producers have a strong grip on the pricing of their products as well as there being no true single company having total control over the market due to an abundance of competition from producers and very strong demand from consumers. The labor market equilibrium is affected by the supply and demand of labor which is rooted in how competitive that market is. If competition is very high, firms tend to increase efficiency therefore catalyzing their overall performance, and this rule is no exception for powerful companies like Macintosh.
Competition aids in pushing a firm to revamp its’ attack on the market which in turn leads to a better product (in most cases) and a better product leads to stronger demand from consumers which triggers a growth in supply. Macintosh (Apple) has illustrated its’ ability to adapt to the dynamic market of technology by increasing its’ market shares, “The news for Apple was just as good from market research form Gartner, as it clocked Apple at a 15. 4 percent year-over-year increase for the second quarter.
Gartner has Apple increasing sales from 663,000 to 766,000, moving its market share from 4. 3 percent to 4. 6 percent in the U. S. ” (Dalrymple, par 7). Furthermore, in monopolistic competition, one of the key elements in gaining the upper hand in the market is by presenting ones’ product with through a superior method of branding/image, a good example would be Macintosh’s commercial during the 1984 Super Bowl. At the end of the day, monopolistic competition emphasizes the strength of brand names which trigger consumer to spend more than what one likely should.
The factors that affect labor supply and demand for the various market structures and thousands of organizations are immense. Careful research, planning and efficient execution in managing labor needs and demand must be taken in order to survive and be successful in any of the market structures. As our markets develop in emerging demographic locations, the demands will continue to fluctuate and grow. Improved and innovative technological advances that provide consumer greater and easier access, labor and demands will produce new variables to consider.
The access to goods and services via the internet on a global level changes a company’s needs and possibilities for the labor they secure and products they provide. With Microsoft, for example, this monopolistic company needs to stay on the cutting edge of technology and programming capabilities and innovation. They require a highly skilled and trained labor force to work in specific areas such as product development. For this area, laborers will be paid higher wages and are in demand more so than in areas like their manufacturing department.
The quality of education in a country or access to education and training will affect a labor force. Companies are often challenged with filling their needs with the skill level of laborers to perform the work. The ability for laborers to be able to shift from a declining market to a newer emerging market that is expanding is also crucial. The economic downturn in America will provide many challenges for our economy for many years. Unemployment is at an all-time high and no one is certain if it will continue.
With the labor force out of work, the demand for goods and services also declines. The amount of goods exported from this country will also decrease further bringing the economy down. The demand for goods and services is affected greatly due to the current state of the economy. Further compounding the issue is that the economic crisis is global. Factors such as increased finance rates will halt consumers from being able to purchase goods and services. The availability of substitutes for goods or complimentary goods also affect the demand rate for specific goods. As mentioned before, echnological advances will provide new opportunities and goods for consumers and will change the direction and efficiency of the workforce. As with all things in general, everything has a life cycle. What is important and crucial to consumers today, may not be tomorrow. The laborer that is required today, may be replaced by new technology or not be needed at all due to lack of demand. We are in a world that is ever changing at an exponential rate. The ability of a company to stay efficient, marketable and profitable all while satisfying the demand of the consumer is key to success in the volatile world of commerce.