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by Retric
24 days ago
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> in a competitive marketplace … current situation. Lots of words to say you don’t understand what you’re talking about. At the most simple level monopolies extract profits through raising prices above that of a competitive market. This price increase reduces total sales even as it drives up profits. As such the existence or non existence of a monopoly would change how much energy/etc AI was consuming among a host of other effects completely independent of how much utility it provided. > nobody is analyzing the future here That’s genuinely funny. |
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if you want to sound like you know what you are talking about, don't talk about "total sales", you want to talk about quantity demanded at the market clearing price vs the monopoly price, and the effect that has on producer surplus.
and what is bad about a monopoly in economic terms is not that they extract a higher price and profit from their smaller number of customers (those customer choose to purchase the product because it's worth it to them), it's the dead weight loss which represents unmet demand which slows the economy overall