what are the social costs of monopolies?

Answer 1

How many companies today are "merging" with others to "save the consumer money"? Remember when the only local phone company we had was Southwestern Bell (or South Bell) That phone company had it made. The consumers had it made. There was one general price and everyone was saisfied with it. Now look at what's happened. Sprint bought out every form of Southwestern Bell across the nation. What good did that do for the people? Nothing other than raising rates. What did it do for Sprint, it cost them a little to buy bell, but gave them millions upon millions for their own pocket book. Walmart versus the chain grocers. This is one where only the comsumer got hurt. Walmart has the best prices in town for groceries. Of course people are going to shop there. But what about the small amount of people who like the big grocery chains like Krogers, or Price Chopper, or HyVee? They have had to endure a 100% markup on everything they buy. The bottome line is that the consumer looses out and the monopolies put extra dough in their pockets. It's really rediculous.

Answer 2

Key part of the question is social costs. There are easily economic costs to consumers, but social costs are much harder to quantify.

The easiest is the lack of innovation in the market. Why would a company innovate if there is no reason to spend the money on it, they would recieve no economic benefit from the investment.

Perhaps you could add some details to clear up what you mean by social costs?

Answer 3

about $30 at toys r us..................