ABSTRACT
A system of monopoly which produces class differentiation may also produce class struggle. The possession by a nation or an empire of a monopoly, which rests in part on institutional factors, is not unlikely to provoke the scheming jealousy of rivals and the revolt of those who suffer from a corresponding disadvantage. In considerations of systems of enterprise, which have monopoly in some form as a principal feature, the possibility of this type of disturbance must, it seems clear, be taken very carefully into account. The more strictly economic aspect of the restrictive effects of monopoly has, however, received fairly careful attention at the hands of economists. Where institutional monopoly is present the community suffers a somewhat similar loss; a loss which in this case is due mainly to the maldistribution of personal resources. There is a more general disadvantage of monopoly, however, displaying a maldistribution of resources and a faulty adjustment of marginal costs and utilities for other reasons.
