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What is the appropriate price? Who gets to decide? How is it determined?

In this case, a judge or jury. You are caught up in details. You are focusing on trivia and minor issues. People make judgments all the time. How do you think a jury figures out how much to award a plaintiff in a personal injury case. It ain't rocket science or calculus. They look at the medical bills, the injury, the future cost, the degree of fault and arrive at a number. Is it perfect in somesort of absolute sense? Heck no, but we do it all the time. MS has unfairly gained a monopoly. "Fair" is a subjective term. But it means something. You obviously feel comfortable with its opposite --"unfair."

What constitutes a "fair" reduction of competition and how is this determination made?

Legislators and courts decide. Businessmen know what is "unfair" competition. So do I. So do you.

If Microsoft can charge whatever it wants for its software why don't they raise the price of Windows XP to $10,000

Because no one would buy it. (That was too easy. Are you trying to trick me?) parsy.

[What is the appropriate price? Who gets to decide? How is it determined?]

In this case, a judge or jury. You are caught up in details. You are focusing on trivia and minor issues.

Uh, Parsy, hehe, why should the courts be deciding what we pay for things? Should the courts decide how much you pay for a car? A house? A movie ticket? Would you like it if the court decided that you had to work for less money than you were asking your employer for?

MS has unfairly gained a monopoly.

How?

"Fair" is a subjective term.

That's right. Which is precisely why it can't be determined by the state. Only a buyer and seller can determine what is fair and what isn't.

Legislators and courts decide. Businessmen know what is "unfair" competition. So do I. So do you.

In a free-market system legislators and the courts ought not decide. You seem to think you know what constitutes "unfair" but you can't explain it.

[If Microsoft can charge whatever it wants for its software why don't they raise the price of Windows XP to $10,000]

Because no one would buy it.

But, I thought you said Microsoft was a monopoly. If Microsoft was a monopoly they could charge whatever they want, right? And since they have the market cornered and no real competition you'd have no choice but to pay the price, right?