The U.S. Postal Services (USPS) has a constitutionally guaranteed monopoly on first-class mail ki 2010, it charged 44C for a stamp, which was not the profit-maximizing price-the USPS goal, allegedly, is to break even rather than to turn a profit.
Following the postal services in Australia, Britain, Canada, Switzerland, and Ireland, the LSPS allowed Stamps.com to sell a sheet of twenty 44c stamps with a photo of your dog, your mommy, or whatever you image you want for S18.99 (that's 9495C per stamp, or a 216% markup), stamps.com keep the extra beyond the 440 it pays the LAPS. What is the firm's Lerner Index? If Stamps.com is a profit-maximizing monopoly, what elasticity of demand does it face for a customized stamp?