[wellylug] Nightmares on Paradise (solved)

[jumbophut]

On Thu, 12 Aug 2004 12:28:02 +1200, Chris Hodgetts wrote:
> 
> Why put the billions of dollars of investment into these projects if you
> are going to only use 1/2 of the capacity..
> 

Under a monopoly (or near-monopoly) a profit-maximising form will sell
fewer units than the socially-optimal number which would prevail in a
competitive market, driving the price up in the process.  Monopolist
(or cosy oligopoly) wins, the consumer loses.  This is why there are
anti-monopoly laws.

Apologies for the intrusion of economics into this list. :-)

-- 
Tony (echo 'spend!,pocket awide' | sed 'y/acdeikospntw!, /l at omcgtjuba.phi/')