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> Economies of scale in production and distribution exist. How is that a consumer benefit in the absence of competition?
by wvenable 4y ago
> Economies of scale in production and distribution exist.
How is that a consumer benefit in the absence of competition?
- n4r9 4y agoExactly. There's no incentive to pass efficiency savings on to consumers vs just making more profit. Also, the types of efficiency savings that may be made by monopolies can be fragile. For example, implementing a standard component from one vendor across an entire industry renders that industry more vulnerable to bugs or faults on the component or the vendor going bankrupt.