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by mulmen
584 days ago
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> In a perfect competition environment all profits go to 0. Competition drives prices down to the lowest sustainable point but not to zero. If one company drives prices below a sustainable (profitable) point that’s market failure because it starves the competition. It’s the thing Google did and the reason we have anti-trust law. Google created a situation where they had no competition. Necessity being the mother of invention suggests that they innovate less in the absence of competition. Monopolies are poison to innovation. |
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