>> legal climates that subsidize their inefficiencies and inhibit the onset of diseconomies of scale. Usually diseconomies of scale start at a very large level

>> legal climates that subsidize their inefficiencies and inhibit the onset of diseconomies of scale. Usually diseconomies of scale start at a very large level , far above the level of a single community. That's the case for most physical goods. Heck , you see it best in small countries like Israel - everything tends to form into monopolies or duopolies , exactly because of economies of scale. And when the state tries to think about building alternative companies, the sums involved are quite high - $500 million + . this is way beyond what a community could afford to aggregate even under optimal conditions.