For those of you who are somewhat regular readers, you may have noticed a significant decline in the frequency of my posts. Allow me to explain: thought my efforts of studying monopolies, I've encountered a point in which I am seeking to understand why it is a general perception among economists that monopolies are harmful to the consumer and the market in general, using mathematical, not theoretical, reasoning.
More specifically, I've spent over 20 hours researching the idea of the perfect market model, exploring its intricacies and questioning every assumption (why does the marginal revenue have to equal the marginal cost, why is the demand line flat in contrast to being a downward slope, why is the marginal cost curve also the supply curve, why would a firm want to enter if it only makes zero economic profit in the long term, how is it possible to make profit in the short term). Contrary to popular belief, my knowledge of actual economic functioning was severely limited, and, as such, it has taken me a great while (and a great deal of aid from the folks over at Yahoo! Answers) for me to begin to understand the neoclassical Austrian economic theory that seems to be permeating our society today.
That being said, I am hoping to be able to be finished sometime this week, so expect an abundant post focusing on the topic.
On a personal note to Lauren: I'll lend you the book as soon as I can; I really need it right now!
Subscribe to:
Post Comments (Atom)
1 comment:
if you ever ran for any political office or even worse: president; i'd never vote for you.
Post a Comment