There really
aren't any, except in certain rare circumstances.
Monopolies are great for
business owners; monopolies restrict production and raise prices, leading
to much higher profits. But both of those things are extremely bad for
consumers, and in fact it turns out that the harm to consumers is almost always larger than the
benefit to business owners, to the point where we could literally just take some money from
consumers and hand it to business owners, then establish a competitive market, and everyone
would be better off than they were under the monopoly. (Not that we necessarily
should, but we could, in
theory.)
Competitive markets are provably optimal for consumers in the long
run, as they produce the most efficient amount of goods and sell them at the most efficient
price.
There are basically only two circumstances where monopolies can be
beneficial for consumers.
The first is if there is an economy of
scale. If the good is actually produced more efficiently in larger quantities, then a
Friday, 6 May 2011
What are the benefits for the consumer of a monopoly market?
Subscribe to:
Post Comments (Atom)
To what degree were the U.S., Great Britain, Germany, the USSR, and Japan successful in regards to their efforts in economic mobilization during the...
This is an enormous question that can't really be answered fully in this small space. But a few generalizations can be made. Bo...
-
The love that exists between CÄrudatta and VasantasenÄ is clearly very strong as it endures throughout all manner of trials and tr...
-
We are given only a few glimpses of the lives of inner party members. However, those glimpses show us that this small group of party...
-
Eliza Doolittle undergoes various transformations as she is changed from a poor, Cockney, downtrodden flower girl to a lady who is d...
No comments:
Post a Comment