Then people can move elsewhere. People won't tolerate it forever. This can be seen in the real estate market in the city I live in. Several downtown blocks in prime locations have a single owner. She charged outrageous rents, and now half of these (prime) locations are empty, and new businesses have cropped up in the neighborhoods around the downtown core.
> 2) Vertical monopolies. If your company buys out not just the competition, but the entire supply chain, and there is a high cost of entry to being able to enter the market -- say automobiles -- then you can quash competition as it arises.
While this is possible in theory, it hasn't happened in a free market.
> 3) Coal mines. If the only job you can get is in a coal mine, and the operator of said mine owns all the mines in your geographic region, you don't have much of a choice. This is especially true if you are working 12+ hours a day 7 days a week for a pittance, or are a minor child.
I live in a country where people will travel 4000 KM for a job. People will move if they perceive economic conditions to be unfavourable. If enough people do this, the mine owner will be forced to raise wages or face a shortage of labour.
> 4) This is libertarian fantasy and rightfully deserves the scorn and ridicule it has so far received in this thread.
Only Americans would make an accusation of political bias in a discussion such as this, using such terms (libertarian).
Fact is, the study of economics is the same whether you're in a market economy or a controlled economy (and likewise whether you vote right, left, or centre). And most economies are mixed BTW.
