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Exactly! If the threat of competition holds prices below the profit maximizing levels for a monopolist you may have a local monopoly but it’s not a natural mono
by barry-cotter 7y ago
Exactly! If the threat of competition holds prices below the profit maximizing levels for a monopolist you may have a local monopoly but it’s not a natural monopoly.
- QuesnayJr 7y agoA pure monopoly is a textbook notion, like a frictionless plane. In practice, there's more or less market power, and thus more or less of a role for government intervention to correct it.