Question
Apple and Google are both facing monopoly allegations in regard to their app stores. They limit competition through being selective with what developers/applications will be
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Article: The Rising Costs from Monopoly Utilities and Excessive Energy Mandates
Summary:The article addresses the problem of monopolies in the market to produce electricity, with an emphasis on investor-owned utilities (IOUs) such as Pacific Gas & Electric (PG&E) and Hawaiian Electric. The monopoly model's proponents contend that economies of scale in the production of electricity render a single large producer more productive than several smaller ones. This fits the microeconomic criteria of a natural monopoly.
However, the article refutes this assertion by highlighting that monopoly utilities raise customer rates since they have no incentive to operate more efficiently. Given the absence of competition, this is consistent with the pricing inefficiency that is predicted in monopolies. The absence of competition discourages creative thinking in new technology, which could impede long-term cost savings. The article also highlights instances where utilities have neglected critical grid maintenance in favor of expenditures in required renewable projects, raising worries about safety and dependability. This presents concerns regarding how resources are distributed in monopolistic environments.
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