>Is it mom 'n pop shops everywhere and extremely expensive search costs and high markup?
You're assuming that having lots of little stores as opposed to one big chain means high markup. It doesn't have to. Walmart has extremely high markup in certain areas.
Personally I think a capitalist "utopia" would indeed consist of countless small companies all competing on equal footing with each other. The enabling factor would be instant communications and robotic production to keep costs down. Big companies damage the market because they move closer to monopolies. Imagine trying to get into the general retail space today!
Toys can be up to 60% for example (probably average 35% to 40%). I think there are examples that go higher than that but toys is the only one I'm certain of.
You're assuming that having lots of little stores as opposed to one big chain means high markup. It doesn't have to. Walmart has extremely high markup in certain areas.
Personally I think a capitalist "utopia" would indeed consist of countless small companies all competing on equal footing with each other. The enabling factor would be instant communications and robotic production to keep costs down. Big companies damage the market because they move closer to monopolies. Imagine trying to get into the general retail space today!