Reported Post by GoChiefs

Moderator Discussion Backup 0 replies 5 views
GoChiefs's avatar
GoChiefs
Posts: 16,754
Mar 5, 2014 3:06pm
GoChiefs has reported a post.

Reason:
Over the line at the end? Theres also another post after this one doing the same thing.
Post: Ads on Schoolbus
Forum: Serious Business
Assigned Moderators: N/A

Posted by: sleeper
Original Content:
I Wear Pants;1587249 wrote:A billionaire has bought all the land and roads in my county. He charges a $2 million toll to use the only road that reaches my property so now I can't get any food. The free market solves everything.
I would say he overpaid on his investment and neglected that in a free market there are zero regulatory barriers to entry such that a competitor could build roads and charge a much lower price to attract customers on his roads. Even if the competition charged $1.999999999999 million instead of $2 million he would win attract more customers and leave open the opportunity that another entrepreneur could build another road and charge an even smaller amount until the market clearing price was finally reached.

You also neglect that if someone bought up all the roads in the county; the people of the county could move to a county and therefore punish the billionaire's investments until he ran out of money making shitty investments.

I don't know why I bothered responding to a hypothetical clearly thought up by someone with no degree in economics and who prefers men up his pooper.