1) It could be argued that Microsoft's two main products, Windows and Office, are examples of:

a) perfect competition.

b) monopolistic competition.

c) a natural monopoly.

d) an oligopoly.

2)According to Ronald Coase (Coase Theorem), if a firm exists, what can we safely assume? This is supposedly found in "The Problem of Social Cost" by Coase.

1)Microsoft's Windows and Office can be argued to be natural monopolies since they were the first entrants in their respective markets and have had a long time to develop and improve. The cost of entry into the same market is thus high for other companies that are interested in building a similar product.

Windows is Microsoft's brainchild and the product that defined Microsoft and its prowess in developing computer software. Office is another Microsoft product that was designed for automating and simplifying common office tasks. These products by Microsoft have dominated the personal computing space for decades. They are used by millions of people across the globe and have propelled Microsoft to a position where it is perceived as a threat to other software companies investing in the same products.

2)Ronald Coase suggests that various well-being redistributions are usually renounced if a firm exists due to the bargaining transaction expenses. Therefore, in most cases, the transaction costs usually minimize the price predictions that might have caused an effective resource distribution. According to Coase, when these occasions happen, the law should generate an identical result to the outcome that would occur if the transaction costs were omitted to favor firms.

In case disagreements arise from property rights under Coase's assumptions, the involved parties in firms are more likely to resolve the systematic inputs and outputs to maintain a productive distribution of resources.