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As a general rule, dominance in the software industry does not change over time; the best-selling products in the early 1980s are still the best selling products today.

A) True
B) False

1 Answer

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Final answer:

The claim that early 1980s software products maintain dominance today is false. Market dominance shifts over time, and broader market definitions often show lower concentration than narrow ones.

Step-by-step explanation:

The statement that dominance in the software industry does not change over time, and that the best-selling products in the early 1980s are still the best-selling products today is false. Dominance in the software industry has changed significantly over the years, with various companies rising and falling in their market share. For instance, Microsoft had a dominant share of the software for computer operating systems in the 1990s, but their share in the broader market for all computer software and services was only about 14% in 2014.

The way we define markets is complex, and a narrowly defined market can show a higher concentration than a broadly defined market. For example, while DeBeers may have a monopoly in diamonds, it holds a much smaller share in the broader market for precious gemstones, and an even smaller share in the market for jewelry.

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