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Monopolies maximize profit by setting a price greater than the market clearing price, causing a lot of unmet demand.

• wbl 10y ago
  Except that price must be below what competitors will offer.
  • chasing 10y ago
    No. This is the problem with monopolies. They use other advantages to win markets without competing on price, features, or innovation. It's harmful to consumers.
  • xapata 10y ago
    A monopoly by definition has no competitors.
    • wbl 10y ago
      Yes it does! It has all the competitors that could and would be started if prices rose.
      • xapata 10y ago
        You're counting hypothetical competitors? So how do you propose measuring how many competitors there are in a particular market? With that definition, there are an infinite number even if I can currently purchase from only one vendor.