… the first time any concern popped into my head while reading this cartoon was when, half way through, I suddenly thought “where is the demand curve”?
He shows that supply rises as price rises – and that is great. And given that the marginal cost is zero, this would give pretty awesome profits. However, it misses the point that we need a demand curve in order to determine price – and generally as price goes up demand goes down.
My solution. The firm should start buying and wasting power (generally on things that upset their employees) in order to increase demand!
Although, this might not be socially optimal if, ya know, we care about the welfare of the workers …