alt Hacker NewsIsn't this true in a lot of situations? Basically anytime maximum production capacity of an input is limited, or scale-up time is very long, firms are large relative to the supply so they are not price takers.
Isn't this true in a lot of situations? Basically anytime maximum production capacity of an input is limited, or scale-up time is very long, firms are large relative to the supply so they are not price takers.
PP's point has (mostly?) been addressed in
https://www.aeaweb.org/articles?id=10.1257/mac.20180386
Inputs that can be monopolized are manifestly _not_ the intangibles; price-taking is independent of their effect