Pero, de manera general, cuanto más cercano a la completa sea el monopolio, más eficazmente es probable que cumpla su propósito.
Tales coaliciones empresariales tienen el efecto de llevar las ganancias a un nivel razonable, no solo mediante
1 The obvious remark may be added, for complete-ness of argument, that the various branches of industry lend themselves to management by monopoly in extremely varying degrees, some, e.g., farming, as an extreme instance, not being amenable to this method of management under existing circumstances; others, again, as, e.g., retail merchandising, can be managed by this method only to a very restricted extent; while at the other end of the scale, in such industries as railroading, monopoly management, more or less pronounced, is highly unavoidable.
THE THEORY OF MODERN WELFARE 261 making it possible to regulate output and prices, but also by the economies which are made practicable on this footing. Coalitions of a less comprehensive character, as spoken of above, also eflfect economies in the cost of production. But the larger coalitions which bring the business to a monopoly basis have not only the advantage which comes of the large-scale organization of the industrial process, but they also enjoy peculiar advantages in the matter of cost, due to their monopoly position. These added advantages are more particularly advantages in buying or bargaining for all goods, materials, and services required, as well as in selling the output. So long as the coalitions are not comprehensive enough effectually to eliminate competition, they are constrained to both buy and sell in competition with others. But when the coalition comes effectually to cover its special field of operation, it is able, not only to fix the prices which it will accept {on the