In theory, that is indeed an issue with natural monopolies.
In practice, however, the only areas I can think of where actual monopolies exist are areas with government granted monopolies, e.g. telco/cable or patent trolls. I'm sure there are a few natural ones, however.
But you did catch me - I'm not a laissez-faire capitalism purist. I just think it's a pretty good first approximation.
In practice, however, the only areas I can think of where actual monopolies exist are areas with government granted monopolies, e.g. telco/cable or patent trolls. I'm sure there are a few natural ones, however.
But you did catch me - I'm not a laissez-faire capitalism purist. I just think it's a pretty good first approximation.