No, governments tend to produce monopolies.
Can you find true monopolies in the free market, in the last 100 years, that have lasted for at least 20 years, without some kind of government backing/suppression of competitors? I only know of one.
Things only count as monopolies if they have monopoly pricing power; Google is not a monopoly, they cannot even charge 1 cent per search.
In practice, despite economies of scale, large companies age and become bloated, inflexible, etc. So there's typically plenty of room for new companies to compete.
If a monopolist buys all upstarts, then that creates an even stronger incentive to make competing businesses! You don't even have to succeed in the market, you just have to get bought up! The more they buy out, there stronger incentive there will be to enter the market. No one can do this indefinitely- except with some kind of government support- say a regulation that makes it difficult to enter the market.
Can you find true monopolies in the free market, in the last 100 years, that have lasted for at least 20 years, without some kind of government backing/suppression of competitors? I only know of one.
Things only count as monopolies if they have monopoly pricing power; Google is not a monopoly, they cannot even charge 1 cent per search.
In practice, despite economies of scale, large companies age and become bloated, inflexible, etc. So there's typically plenty of room for new companies to compete.
If a monopolist buys all upstarts, then that creates an even stronger incentive to make competing businesses! You don't even have to succeed in the market, you just have to get bought up! The more they buy out, there stronger incentive there will be to enter the market. No one can do this indefinitely- except with some kind of government support- say a regulation that makes it difficult to enter the market.