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To: Da Bilge Troll
In a truly free market, if the monopoly attempts to fix prices higher than supply and demand would allow, then competition would quickly enter the market and force the monopoly to break up.

Some truth there, for sure. The problem occurs when the monopoly exists in a high-infrastucture industry. If I, for example, owned all the oil refineries in the US, I'd have little worry of someone trying to compete with me.

So my pricing would not be based on keeping customers, as is the case with competitive industries. I could charge pretty much whatever I wanted, as long it wasn't so high that you would be willing to spend millions to build your own refinery.

27 posted on 08/29/2015 12:46:09 PM PDT by Leaning Right (Why am I holding this lantern? I am looking for the next Reagan.)
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To: Leaning Right
"I could charge pretty much whatever I wanted, as long it wasn't so high that you would be willing to spend millions to build your own refinery."

True, but let's define what a "fair price" is. It is the price at which supply and demand are in balance. So, if the price is low enough to discourage competition (and there is no coercion involved), then what are we complaining about?

29 posted on 08/29/2015 1:11:32 PM PDT by Da Bilge Troll (Defeatism is not a winning strategy!)
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