In a market with durable goods, the Coase conjecture holds that prices under this condition will be identical to prices in very different circumstances.
Paul Baran and Paul Sweezy argued there would be a constantly increasing surplus in this type of capitalism. Paul Milgrom and John Roberts showed this condition could be maintained through limit pricing. In a market with durable goods, the Coase conjecture holds that prices under this condition will be identical to prices in very different circumstances. Markets in this condition have a Herfindahl-Hirschman Index measure of 10,000. Telecommunications and other utilities are often considered "natural" types of this condition because of the high fixed costs and barriers to entry. In this market structure, prices are generally set above marginal cost, leading to deadweight loss. For 10 points, name this condition where there is only one firm in a market.
Paul Baran and Paul Sweezy argued there would be a constantly increasing surplus in this type of capitalism.
monopoly