Wednesday, August 26, 2009

wait, so monopolies are, like, bad?


The short answer for anyone who has to pass econ 101 is that monopolisitic competition leads to marginal inefficientcies because the monopolistic firm produces at an output where average total cost is not a minimum. A monopolistically competitive market is a marginally inefficient market structure because marginal cost is less than price in the long run.

So basically, Tickmaster and LiveNation are boning you. Hard.


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