ABSTRACT
Monopoly consists in the performance of a service by a single undertaker, or a number of undertakers acting in unison; the stimulus of competition and the fear of extinction at the hands of rivals are alike absent. Thus the monopolist has power for good or ill; he may turn to productive uses energies formerly absorbed in the competitive struggle; or he may drift, through security and the power of extortion, into wasteful and obsolete methods of production. While every monopolist, may economise, the inefficiency of unprogressive methods can be borne only by the few who produce for an inelastic demand. The danger of monopoly lies, not in its existence, but in its abuse; and such abuse is not invariably profitable.
