ABSTRACT
The development of an industrial enterprise is a fairly intricate task in organization and administration. An economy where the typical industry is shared by a few firms is awkwardly inconsistent with a theory of capitalism which requires that power to affect prices or wages or output or investment be impersonally governed by the reactions of the many. Economic theory, as distinct from economic statistics, had dealt the competitive model a serious blow. In 1932—33, under the combined attack of an American and a British economist the old bipolar classification of markets, competition or monopoly, was abandoned. New categories of markets, neither purely competitive nor fully monopolized, were recognized between the two. A vast distance separates oligopoly from the competition of the competitive model. Price-making in markets where there are a few sellers is not only measurably influenced by the actions of any individual firm but the individual must take into consideration the response of others to his initiative.
