Your theory is absolutely correct but in practice the corporations and government represent a very substantial concentration of power and resources in the control of very few, plus they are allied with each other. Government often helps large corporation via bailouts, tax breaks, subsidies etc. and large corporations inform government and even fill it&#x27;s ranks. Essentially we have a system of state capitalism not laissez-faire capitalism. This makes it very difficult for small companies to compete freely in an open market.