chapter  7
44 Pages

PRICING UNDER THE INFLUENCE OF PRODUCTION

THEORY OF VALUE 97 = £8.67 a unit with a total sale of 1,333 units-or 666 to 667 for each monopolist. In the same way, if there are three or more monopolists, the price will fall further, until it finally sinks to the bare cost of production (p = a) as in free competition. The public will, therefore, gain by the competition of the monopolists, but the monopolists will lose. Their own interests compel them to combine and divide the profits-in which case monopoly prices and sales will again be the same as when there is a single monopolist.1