Edit post

Edit your reply below.

Post Body
Enter your post below.
[quote]QUOTE: Originally posted by jeaton "Finally, what is so hard to grasp with the truism of "Monopolism is counterintuitive to capacity expansion"? That's Econ 101. " FM-If that is what you were taught in Econ 101, you ought ask for a refund. [/quote] Hmmmm, maybe you should provide some evidence to the contrary. ANY evidence to the contrary. Objective, subjective, cited or uncited, or even from the depths of your own personal feelings, doesn't matter, just give us something. Until then, we have this: 1. First, most economists will tell you that, unlike a competitive market, a monopolist market is predicated on limiting any expansion of supply drivers, the purpose of which is to allow for pricing power and profit maximization. Agree or disagree? 2. Most transportation economists agree that NA railroads are "natural monopolies", in that the owner of the track is also the provider of transporter services, and practical limitations to entry into that market prevent side by side multiple carrier intramodal competition in most areas. Agree or disagree? 3. In the past half century, it has been the modus operandi of railroads to reduce route miles and service offerrings, via abandonments, company consolidations, etc. because NA railroading has been in a state of "overcapacity" (in spite of an ever growing US and world economy!). Agree or disagree? Take the sum of #1, #2, and #3 above, and what do you have? "Monopolism is counterintuitive to capacity expansion". Now, do you still disagree with that statement? If so, then it is your econ teachers that have failed you miserably.
Tags (Optional)
Tags are keywords that get attached to your post. They are used to categorize your submission and make it easier to search for. To add tags to your post type a tag into the box below and click the "Add Tag" button.
Add Tag