|October 5, 2003|
What is good about a monopoly?
Sometimes the services that they provide work better than when they are split up.
It simplifies your choices. If it is well-regulated, its economies of scale pass to the consumers.
When you get to pass go and collect $200.
That one of the playing pieces is a shoe! LOL! Sorry, I know what you mean, but I'm too tired right now to think seriously!
If a monopoly makes good products, you can use them and know that they're going to be good/standardized wherever you go. Like I didn't have to wonder what Pepsi was when I was in Ireland. I could just drink it and everything was all right. : )
Where else will no one think you're strange if you tell them you're a thimble? But since the word wasn't capitalized I guess a more suitable answer would be that it takes away your indecision.
Suppose there are instances when the costs in capital to setup a system (i.e. railroads, telephone company) are so huge and the potential profits only so much, that competition is limited. Hence the need to have strong regulation of such systems. In terms of monopolies create through conglomeration, there are of course efficiencies produced.
I suppose lots and lots of money to be made by the person who owns it?
Monopolies can produce efficiencies of scale.
Monopolies such as phone companies and cable companies are good because it is easy to understand what you will be receiving. They are bad because you can't shop around for a better price.
In some way a customer need is being met.