Large companies can only exist if they receive monopoly rents. Otherwise incumbents would be outcompeted by challengers and we'd see a convergence of many small firms with low profit margins. So yeah, its the responsibility of the government to regulate monopolization and they aren't doing it.

[–] Collatz_problem@hexbear.net 5 points 4 months ago (1 children)

Economies of scale are a thing, so breaking up monopolies can easily result in low efficiency. Much better is to nationalize them.

[–] moujikman@hexbear.net 1 points 4 months ago

Yeah, it's a major consideration when determining if a merger should happen, e.g. Krogers. Just because its more efficient doesn't mean you get consumer benefit because you should expect them to profit maximize with monopoly rents. I mean definitely +1 on nationalize them rather than let capitalism go unfettered, but I'm making a general observation that large companies can only be large because they can extract monopoly rents, rather than just a barrier to entry to match efficiencies of scale thing.

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