Imagine that everything in the world is built out of Legos. Everybody gets their Legos from the Lego Store, where they're free for some reason.
For obvious reasons, the Lego Store has no competitors.
Now, imagine that one day, one of the Lego store's suppliers throws a tantrum, and decides to stop selling 1x2 bricks. Construction workers are frustrated, and try to make do with other sizes. Their creations aren't pretty, but existing buildings are just fine. Most people are unaware of the crisis unfolding.
Fortunately, in this world, our Benevolent Lego Overlords have given away the plans for every kind of Lego, have given away the machinery to manufacture them for free, and have encouraged us to derive new and unique bricks from their designs.
Within an hour, the construction workers who stockpiled some of this free equipment are churning out 1x2 bricks, and are giving them away to anybody who needs them. A few people even design their own 1x2 bricks.
Concerned that they're no longer the only store in town, the Lego store quickly fire up their own machinery, and start producing 1x2 bricks themselves before the end of the day. The supplier is pissed at the Lego Tyrants for silencing his protest. A few construction workers also express concern about the Lego Cartel's inexplicable monopoly, but these concerns are largely ignored, and things largely go back to they way that they were.
The Lego Store starts keeping inventory on hand to prevent a similar crisis from forming in the future.
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