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I feel like you're describing growth in general, not natural monopolies specifically. There's a high cost to building a store and the more stores you build, th
by philh 9y ago
I feel like you're describing growth in general, not natural monopolies specifically.
There's a high cost to building a store and the more stores you build, the more customers you serve, the more stores you can afford to build.
There's a high cost to making a movie and the more movies you make, the more people pay to see your movies, the more movies you can afford to make.
- frgtpsswrdlame 9y agoSure, barriers are a gray area. In society we draw a sort of arbitrary line for when they're high enough to represent a natural monopoly. We've decided that electric and water companies for example represent high enough fixed costs to warrant being a utility. So the question then becomes how much do you think it would cost to build a search engine as good as Google? I'd say that number is probably ginormous, hence why it should be treated as a utility.
- tripzilch 9y agoSure, and growth in general is not always a good thing.