If there was competition companies would not be able to increase profit. What allow for this cutting cost and at the same time increase prices is that consumers

If there was competition companies would not be able to increase profit. What allow for this cutting cost and at the same time increase prices is that consumers do not have much of an option. When a market is just a couple or three companies owning all the products (think Procter and Gamble, Microsoft or Nestle) the all prices go up and there is no real alternatives left as they own most of their respective markets. So it is perfectly logical for companies to do this. It shows that the market economy is failing in that areas, thou.