Monopoly and Competition in the United States of America

Competitionoutweighs monopoly by a wide margin in the American economy today. This does not mean that manufacturing industries sell in open markets where prices automatically reflect variations in demand. Nor does it denote the absence of monopoly, for the file of anti-trust proceedings shows the strength and sometimes the persistence of monopoly in several industrial areas. With these exceptions, however, and that also of the publicly regulated industries, monopoly tends to be limited in its control of a particular industry, in its coverage, and in its duration. Indeed, a full view of industrial organization in America, and of its operation within the bounds of public policy, shows many industries with monopolistic structures which make contributions to progress without becoming entrenched. Technological advance is so rapid that per capita output rides a 2•4 per cent per year upward trend. Delays in introducing new processes and products by concentrated industries are frequently alleged but rarely found,1 and probably bulk smaller than the technological lag of some competitive industries.2 Resources are quite fully employed except when the national income collapses. Most cases of persistent excess capacity, of which competitive agriculture is probably the most extreme, can be explained on grounds other than the structure of the particular markets.3 Otherwise, resources do adjust as pulled by shifts in final demand.