Monopolies can distort competition from "summary" of Principles of Economics by Saifedean Ammous
Monopolies have the power to distort competition in markets. When a single firm dominates an industry, it can set prices higher than they would be under competitive conditions. This is because monopolies face limited competition and can exploit their market power to charge higher prices without fear of losing customers to competitors. As a result, consumers are left with fewer choices and may end up paying more for goods and services than they would in a competitive market. Furthermore, monopolies can also stifle innovation and technological progress. In a competitive market, firms are incentivized to constantly improve their products and services in order to attract customers and gain market share. However, monopolies do not face the...
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