Re:The Ultimate Guide to Inflation
by TchoBeer on Monday May 10, 2021 @02:33PM
(#27109265)
>But because Netflix is a quasi-monopoly, they would be likely to increase prices to find the new equilibrium maximum profit point.
That's the thing though, if they have a perfectly horizontal supply curve, then the maximum profit point would move horizontally but not vertically, and price would not increase. This sort of analysis is surely too simplistic, but that's the model.
That's the thing though, if they have a perfectly horizontal supply curve, then the maximum profit point would move horizontally but not vertically, and price would not increase. This sort of analysis is surely too simplistic, but that's the model.