2 ms·
Monopolies are optimally efficient across the economy, as long as the monopolist doesn't get too greedy. Competition is wasteful -- competition is why the deadw
by lupire 4y ago
Monopolies are optimally efficient across the economy, as long as the monopolist doesn't get too greedy. Competition is wasteful -- competition is why the deadweigh loss ad industry exists!
- clairity 4y agomonopolies seeming to be efficient like that is only true in a limited static analysis. in a dynamic and complex economy, there's great value in the flexibility, ingenuity, resilience, price discovery, and creative restructuring provided by multiple competitors in a given market.