Question

The Operating System market is dominated by one massive player: Microsoft, which has 80% market share with its Windows operating system. When Corus, a productivity software company, expanded into operating systems as well, Microsoft offered multiple promotions to discount the price of Windows far below that of Corus, squeezing Corus out of the market. Once Corus declared bankruptcy, Microsoft ceased discounting and prices went back to their previous levels. This is an example of: Group of answer choices

Answer 1

Answer: A. Rivalry

Step-by-step explanation:

Microsoft seems to be operating in an oligopolistic market where it is the dominant business and there are other smaller competitors. A common factor in such a market is rivalry.

Rivalry occurs when a company in such a market, reduces their prices to a lower level than others so as to capture market share. This is what Microsoft did in this place and it enabled them to capture the market share that Corus was targeting until Corus went out of business.