The Hidden Costs of Monopolies

The biggest problem with monopolies isn't just the high price. In a competitive

market, firms produce until the cost of making one more item equals the price.

It’s efficient. But a monopoly is the only game in town. To maximize their

profit, they intentionally produce *less* than what society actually wants and then jack

up the price. This creates what economists call "deadweight loss." It represents all

the products that never get made—deals that would have benefited both the buyer and seller

but can't happen. So, monopolies don't just overcharge you; they starve

the market of value.