Why might the lack of competition resulting from business mergers tend to lead to market failures

Mergers usually occur between two companies with complimentary business activities, who want to work together and dominate an industry.

These usually lead to oligopolies and in some cases, a monopoly over the market. This can lead to less choice for the end customer and even price hikes.

A lack of competition is never good for a market

Eventually too many jobs, businesses and third-party contractors work for a smaller number of companies and become exposed to market failures.

Prior to the creation of the us constitution, the general view of representative government is that it only worked in very small-scale environments- essentially a city-state or smaller. otherwise, the actual reflection of popular will declined in the representatives (ie, the difference between 1 representative per 100 citizens and 1 representative per 10,000 citizens), and generally the whole process became inefficient and self-destructive.james madison, however, was like 'no beezy'. he remarked that small republics were prone to faction and thus collapsed quickly. a large republic, he said, had so many interests and factions that none could rule, and thus they had to moderate and compromise.