alephnull on 23 April 2009
| Squilliam said: I think that generally where a company has market power they will act against the best interests of the consumer and attempt to derive a much higher producer surplus than they could get otherwise. |
Under orthodox models, monopolists will price above the point where MC=MR as you say. However, you have to be the first I've encountered to say this is in the interest of consumers. Usually the argument from classical liberals is that monopolies are impossible to maintain for a significant period without state interference.
