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> From the economics perspective, something being Monopoly doesn't mean it's inefficient. From an economics perspective, if there is a monopoly, there is no fr
by simiones 2y ago
> From the economics perspective, something being Monopoly doesn't mean it's inefficient.
From an economics perspective, if there is a monopoly, there is no free market, so you can't rely on the market for efficiency. A monopoly can be efficient, but it can also be arbitrarily inefficient and still keep its position.
- s1artibartfast 2y agoyou are correct and I agree. I was trying to make the point that monopoly isnt defined by inefficiency, either by the technical definition or the colloquial one. Rality is complex, and few monopolies can be arbitrarily inefficient. I think this is where a lot of the public confusion about monopiles comes from. If you have the only grocery store or gas station in town, it might seem like there is a monopoly. There is probably a wide leeway to raise prices or be inefficient, but not without limit or else someone would compete. If Amazon, Google, or whomever 10X'd their prices, competitors would arise.