[efaith]

But that does not negate the competitive principle that he articulated. Many, perhaps most of the products we buy involve a chain (or tree) of producers, all keeping each other honest by the competitive principle. In the making and selling of the pencil, one company mines the graphite, another shapes it into the final form, a third makes it immediately available to the public, and there may be many in between. Similarly for the other components of the pencil - the wood, the rubber, the metal, the paint. It's a vast cooperative effort, and most of it is not directly connected to the final customer.