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economies of scale and global competition
Following on an earlier line of list discussion, if a small or
medium-sized country were to draw up a fresh antitrust law, among the
challenges proponents would face are the following related arguments:
1. Economies of scale mean strong anti-monopoly policy is inappropriate
for our modest economy.
2. We compete in a global economy. Even in industries where a single
national firm controls the entire domestic market, it faces existing or
potential competition from global competitors (assuming it benefits from
no significant tariff or non-tariff protections).
3. We need big corporations so that they can be competitive in other
What are the strongest lines of response to these claims? What is the best
economic literature showing the economies of scale argument to be
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