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If there are no government laws preventing from competition popping up - it cannot lead to a monopoly. (I assume monopoly means certain business can sell their

If there are no government laws preventing from competition popping up - it cannot lead to a monopoly. (I assume monopoly means certain business can sell their goods priced highly and competition cannot enter with lower prices)

Barrin92 7y ago
>If there are no government laws preventing from competition popping up - it cannot lead to a monopoly. Yes, it can. It is called a natural monopoly and it occurs when cost of entry and effects of scale are so large that the most efficient provider of a good or service is a single supplier. Not only do quite a lot of them exist, they're actually the desirable form of business in those cases as they provide goods at the lowest unit cost to the consumer. They need however to be regulated so that they cannot abuse their market power.
- perceptronas 7y ago
  Excuse my bad definition, I was referring to 'non-natural' monopolies. On the other note, as a consumer I prefer these natural monopolies exist over that they don't. I would rather have an expensive railway than to not have any railway at all. Obviously investors will want their return on investment. Alternatives with lower capital requirements to setup businesses always exist (rail -> bus/trucks, electricity -> solar panels, internet -> 4G or similar solution, and so on.)
  - modo_mario 7y ago
    Those railways wouldn't exist without the monopoly of the state bringing em about and we've seen how they operate if privatised in the UK and that's still regulated and not even a monopoly. It's shit. Similarly I don't want to see roads privatised because it leads to incredible inefficiency and the open access to the roads provides immense value to the rest of the free market.
  - pjc50 7y ago
    Railways are basically impossible to build without government intervention or at least eminent domain because they require continuous land. 4G also requires some process for radio spectrum allocation in order to be usable at all.

Barrin92 7y ago

>If there are no government laws preventing from competition popping up - it cannot lead to a monopoly. Yes, it can. It is called a natural monopoly and it occurs when cost of entry and effects of scale are so large that the most efficient provider of a good or service is a single supplier. Not only do quite a lot of them exist, they're actually the desirable form of business in those cases as they provide goods at the lowest unit cost to the consumer. They need however to be regulated so that they cannot abuse their market power.

perceptronas 7y ago
Excuse my bad definition, I was referring to 'non-natural' monopolies. On the other note, as a consumer I prefer these natural monopolies exist over that they don't. I would rather have an expensive railway than to not have any railway at all. Obviously investors will want their return on investment. Alternatives with lower capital requirements to setup businesses always exist (rail -> bus/trucks, electricity -> solar panels, internet -> 4G or similar solution, and so on.)
- modo_mario 7y ago
  Those railways wouldn't exist without the monopoly of the state bringing em about and we've seen how they operate if privatised in the UK and that's still regulated and not even a monopoly. It's shit. Similarly I don't want to see roads privatised because it leads to incredible inefficiency and the open access to the roads provides immense value to the rest of the free market.
- pjc50 7y ago
  Railways are basically impossible to build without government intervention or at least eminent domain because they require continuous land. 4G also requires some process for radio spectrum allocation in order to be usable at all.