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Many of these companies have overlapping products and services. If they were to properly combine into a single entity they could probably shed a good fraction of their employees.

Think about it does AMD need to exist at all? Wouldnt NVIDIA be worth more if they didnt exist?

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Indeed, competition is highly inefficient. It would be superior to eliminate it. (Signed, The Bourgeoisie)

There would be a lot of negative externalities to removing all competition... Innovation would slow, prices would rise, quality of service would fall.

This would absolutely not be worth the few extra points of efficiency you might get. Maybe you would get a short-term benefit, but long-term the expected outcome would be much worse.

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