After purchasing an enterprise which deals with the similar business, the fixed cost is expected to decrease, and more efficient employees will be reserved while those inefficient laid off, originating high profit scaled by assets, regardless of tax preferences for incorporating a loss company.
However, the absolute market share may result in monopoly, which doesn't mean lower cost will bring about equivalent lower price for consumers. As for this case, I think the government will strengthen supervision on it.
Besides, it is said in China, too many intermediary pharmaceutical wholesalers and retailers reap big profits, making the price of medicines go up scores of times above manufacturers' price. With the development of cybereconomy, will this situation change in the near future?
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