> A low profit margin means a competitive market (because if it wasn't a competitive market the firm could raise its prices to obtain higher margins). Not nece

> A low profit margin means a competitive market (because if it wasn't a competitive market the firm could raise its prices to obtain higher margins). Not necessarily: if prices are elastic then even a monopoly can aim for low profit margin (in percentage) in order to increase profit. What matters is how much total profit are being made, margin only matters when measuring risk. Also, corporations are social structures, and low competition also encourage complacency in the corporate structure itself, which drives costs up and reduces profit margin.