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Old December 19th, 2006, 08:45 PM  
redcar
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Join Date: December 15, 2004
Location: Ireland
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Default Re: Government "fairness" creates monopolies. Here is the evidence.

Quote:
Originally Posted by Phantom
How would you get screwed out of money? You do know that I still support laws preventing them from lieing and things like child labor, but little else.
this has nothing to do with child labour and all that jazz. absolutly nothing. you really need to do some homework on this subject.

ok i'll use this example, i am the only supplier of say electricity in the market. now which way would i charge my customers,

A) offer a competitive price that would be equal to that of other similiar countries where there is more than one supplier of electricity

or

B) charge a price that means that i get a nice profit, because the consumer has no option but to get their electricity from me

companies in a monopoly situation are able to charge higher prices than they would be able to in a competitive market. and therefore they are able to screw the consumer.

you really need to study up on this because i know what i am talking about, i study Commerce in college.

Quote:
Originally Posted by Phantom
But you don't seem to understand that there will always be more than one company in a market such as airlines. So it is in the best interest of the company to please you.
what about electricity supply? in Ireland there is one company.
what about telecommunications? the high entry costs to get into these industries is a very big deterent.

Quote:
Originally Posted by Phantom
You say you have studied economics? How do you not know such simple things. The free markets always always are better.
preventing a monopoly from occuring is not stopping a free market. ok which is better, having two airlines competing to offer the best price, or one airline making supernormal profits?

Quote:
Originally Posted by Phantom
You also still haven't been able to name a full monopoly thats not government instituted. Also the people are FORCED to buy this product there is a monopoly on.
because i have had a long day, i cant be bothered doing some research. but off the top of my head i could name Ryanair, an Irish airline, it has a monopoly on several routes out of Cork and Dublin airports.

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