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There also are problems with having too many competitors. For example having much less money (due to lower margins) to hire and pay your employees and creating lengthy processes to ensure quality. Competition isn’t necessarily the best solution or even a good one.

More competition is similar to “defunding” all the competing companies.

Yes. There is literally never enough competition for bean counter arguments to matter. Saying “competition” is the solution to a problem is just a bad excuse to not fix it. In the real world, large organizations make decisions based on political pressure from governments and the public.

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