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by ThrustVectoring
3564 days ago
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Monopsonies pressing down costs by exerting their sole-buyer power causes deadweight losses (compared to the free-market clearing price). Really the question is whether or not the redistribution from health care providers to the general population is worthwhile -- and if it is, you have to compare the monopsony against levying a specific tax to accomplish the same goal. |
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Deadweight losses are a joke, if the sole buyer buys too much, they are at a loss. It just does not happen in this sector.