| | It's an excellent article.
My only comment is that in the discussion of why prices don't just keep on going up, the author placed all the emphasis on the fact that demand is not perfectly inelastic.
I would have added that prices are constrained by competition (the use of "market power" that the author mentions requires some form of collusion, which becomes less feasible the higher that prices are relative to costs). The threat (or reality) of investment in new capacity by a new entrant or an existing competitor in response to high prices provides a further constraint.
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