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>In a perfect market, they would be able to sell their services at the same price as the value of those services. Uh nope. A perfect market means the price is
by ikeboy 10y ago
>In a perfect market, they would be able to sell their services at the same price as the value of those services.
Uh nope. A perfect market means the price is equal to their costs, not the value provided. A monopoly is when you can extract the value provided as rent.
- tyre 10y agoSorry, I meant in this case, since they are a monopoly. Good clarification!
- Pyxl101 10y agoI don't think they are a monopoly. Other agencies can pay outside firms as an alternative to using 18F, can't they? I'm not exactly sure how it works so please educate me. I also separately heard that 18F wasn't supposed to bid against outside firms for government contracts. That doesn't really make sense, then, if they're supposed to earn revenue. If they're expected to earn revenue then they should be able to bid for government contracts.
- madeofpalk 10y agoAt least Australia's version of 18F (called DTA) has an enforced monopoly The Australian Government has established a moratorium that stops Commonwealth (federal) agencies from investing in new, or duplicating, service delivery capability. The moratorium is an important tool to help government limit the fragmenting of users’ experience across the Australian Government.
- 1123581321 10y agoZero economic profit is greater than costs.