What happens if a business attempts to charge prices lower than his...
If a business attempts to “corner the market” by charging prices that are too low (i.e., below its’ variable costs of production), the business may drive competitors out of the market temporarily (at...
View ArticleWhat happens if a business attempts to charge prices higher than its...
If any business attempts to charge prices higher than the market will bear, he will lose all his business to his competition, since he cannot force his competition out of business. The businessman’s...
View ArticleWhat happens when a company starts to make a higher profit in its industry,...
If any company is a single seller in any industry and starts making profits higher than other industries, due to high prices; it will attract competition into its industry, as other capitalists move...
View ArticleHow does one judge a monopoly, or non-monopoly?
Observe what is evil here: the act of using the government to outlaw ones competition. It does not matter whether the government uses its power to outlaw competition to “protect” a single business, or...
View ArticleWhat is the key to a proper discussion of monopoly?
The key is to discontinue the equivocation of the term monopoly–that is to use the term “monopoly” to refer to two mutually exclusive concepts: a company formed by economic power vs. a company formed...
View ArticleAre not all monopolies harmful?
Being a single seller, by itself, is not good, nor evil — it depends on how one obtained that single-seller status. Did one obtain a monopoly by economic competition in the marketplace, or did one...
View ArticleWhat is a monopoly?
Today, a monopoly is defined as a single seller in a given industry (appropriately defined). There are massive problems with this definition which I will comment on below.The post What is a monopoly?...
View ArticleDon’t the antitrust laws stop monopolistic practices?
Absolutely not. Harmful monopolies from the old AT&T monopoly (created by government regulations), to the U.S. Post Office monopoly were created by the state. The U.S. Post Office, for example,...
View ArticleWhat is the base of the antitrust laws?
The philosophical foundation of the antitrust laws is the Marxist myth that a free-market will result in the formation of coercive monopolies. Eventually through ‘historical necessity’ they will form...
View ArticleWhat is antitrust?
Anti-trust are those set of laws which punish successful businesses (or trusts) for being successful, i.e., dominant. To quote philosopher Ayn Rand writing in “Antitrust: The Rule of Unreason” Voice of...
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