(Solution) - Suppose that Microsoft is the only producer of operating systems -(2025 Original AI-Free Solution)

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Suppose that Microsoft is the only producer of operating systems and Netscape is the only producer of Web browsers. Suppose also that nobody wants an operating system without a Web browser and nobody wants a Web browser without an operating system. Suppose that both firms produce at zero marginal cost and that the demand for a package consisting of an operating system and a browser is given by Q = 100 ? P.
a. Suppose that Microsoft and Netscape take each others' prices as given. What is the price of an operating system? What is the price of a browser?
b. Suppose instead that Microsoft first announces a price for its operating system; then Netscape takes this price as given and sets a price for its browser. Now what is the price of an operating system? What is the price of a browser?
c. Suppose that Microsoft merges with Netscape. Now what is the price for a package consisting of an operating system and a browser?