3 ms·
This is classic example of short term optimization. Sure, prices can be lower now but it might stagnate there for long time because there is no competition allo
by sytelus 8y ago
This is classic example of short term optimization. Sure, prices can be lower now but it might stagnate there for long time because there is no competition allowed. If it is technologically feasible, competition would find the global optimal point eventually in longer term but monopolies will settle in local minima.