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Politics : Politics for Pros- moderated -- Ignore unavailable to you. Want to Upgrade?

To: LindyBill who wrote (426606)	5/13/2011 2:20:13 PM
From: DMaA	Read Replies (1) \| Respond to of 794294

In your example it is not really a monopoly, he is competing with sources outside of town. If he want's to maintain 100% market share then he has to charge market rates - i.e. the rate below which it makes sense for competitors to enter the market. And doing that doesn't necessarily maximize his profit. Monopolies, over the long term, are only possible with government collusion.