Increasing returns to scale isn't the only way unit costs can go down. Competitive forces typically incentivize companies to come up with new ways to increase p

Increasing returns to scale isn't the only way unit costs can go down. Competitive forces typically incentivize companies to come up with new ways to increase productivity and reduce cost. Having even one competitor is enough to meaningfully reshape the incentives of a monopolist. But you may well be right about the negative utility of having 4 vs 3 companies in this particular industry.