Reality is far more complex then the simple take you have here.
>by offer better quality stuff,
Amazon, for example, offering counterfeits of your product as your product is not under the definition of "better quality stuff"
>for a lower price
Again, offering a lower price consistently is one thing. Using pricing as a weapon, for example selling a product lower than cost in order to monopolize a market is not.
>If the price stays low and never goes to high monopoly prices then it is a good thing.
Not necessarily, but it goes a long way to balancing out the negative consequences. The problem, though, is they've never had prices stay low. Eventually, prices go up. So far, Amazon does this through loss-leaders; products that have low prices allowing them to capture a market and charge high prices for other products as a monopoly.
>If a company becomes a "monopoly" by being cheap, and staying cheap, thats just competition by definition.
If that was all they were doing it would be legal.
>by offer better quality stuff,
Amazon, for example, offering counterfeits of your product as your product is not under the definition of "better quality stuff"
>for a lower price
Again, offering a lower price consistently is one thing. Using pricing as a weapon, for example selling a product lower than cost in order to monopolize a market is not.