Thursday, November 1, 2012

Reflections on Chapter 15: Monopolies

This chapter didn't change my view of monopolies as much as it strengthened it. I've never had a positive view of monopolies and this chapter explained why they are not beneficial for society in general.

I think that the trash removal is sometimes a government monopoly because it's a service that everyone needs. If a private company were to have a monopoly on such a necessary service, they could charge a very high price and make a huge profit. In my neighborhood, there are three trash collecting services to choose from. I chose the company I chose because they offered the same service for a lower price. I am very glad that trash collection is a competitive market in my town since the companies can compete and I can get a lower price.

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