>>2323984>right, so they are less efficientSmall business : 10 output in x time per person with 30% waste → 7 produced
Big business : 100 output in x time per person with 40% waste → 60 produced
Also, the waste rate % doesn't need to be more with the small business, 10% of 100 is still more than 20% of 10. And i think small businesses prob waste more in some instances since they mostly chase for local customers while big businesses being present in multiple markets, having better networks for feedbacks etc.
>the fall in profit should cause downsizing, which is the natural market activity. it doesnt destroy companies, it just reallocates resources to more efficient ends.All the less productive actors which are 'downsized' will be swept away with more productive actors who can pump out more into the markets with more goods who can maintain a steady rate of (general)-profit while the others are hurted more by it.
There are plenty of anti-trust and anti-monopoly laws which try to prevent such stuff as I know ( with either actually forcing different companies to establish a co-monopoly or dividing them )
https://en.m.wikipedia.org/wiki/Breakup_of_the_Bell_SystemJust like how Bell industries were a monopoly in tech(mainly telephone) industry before they were divided, because when the capital is big enough, it is able to invest in higher amounts for its self growth, which potential & capital small businesses lack.
https://en.m.wikipedia.org/wiki/List_of_Edison_patentsNo small business ever could compete Edison Company in patents back then..
And no small company would electrify the country in such scales, because less capital = less efficiency for most of the cases
As for downsizing ( which prob wouldn't happen when monopoly is more desirable ) and reallocation of resources to different ends, a big business in that field is more likely to dominate that end as well
Most small businesses are just doing unnecessary stuff with low productivity ( like restaurants, a communal kitchen with streamlined cooking equipment serving more people consumes less electricity and labor per plate ), they only profit because big businesses try keeping their prices as high as possible, since competition would ordinarily hurt both sides ( lowering the profit rate of both )