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Pastimes : Austrian Economics, a lens on everyday reality

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To: Don Lloyd who wrote (88)	12/17/2001 11:25:55 PM
From: TimF	Read Replies (1) of 445

So my concerns relate more to the 60% increase in resources used in producing this product and no longer available for all the other products and services that consumers would have preferred If the consumers would prefer other products they probbably would not buy the 82% increase in production of this product. The standard of living ultimately has nothing to do with money, but rather with the productivity of labor and other factors of production used in the actual products produced. In this sense, potential competition may be better than actual competition because it allows a higher level of profitability Too much competition might not allow the profits needed for investment, but a monopoly will not IMO result in the most productive use of the factors of production. When management is in a comfortable position they won't stress themselves to cut costs. Like Neocon I agree with you that practically monopolies are unlikly without government intervention and I might accept the idea that monoplies are often not as harmful as most people usually think if the monopoly cares enough about maximizing profits, but I still think they are harmful even in that ideal situation, and I think that the tendency of actual monopolies (rather then just the largest of even a dominent) is to get inefficient. less and less eager buyers must be recruited for a given product. At any given time, more volume for this product means a lower volume for other products. But they will only buy the greater amount of the product if they actually would rather have it (at whatever the current price is) then other products. If the other products are desired more they will be produced instead. Also if you have greater efficiency you might actually increase total production and consumption allowing people to buy more of whatever product these companies make, and more of other products. Tim

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