THE THEORY OF MODERN WELFAEE 259
certain to run more even bhan prices of the like output while sold competitively by rival concerns. :
What has been said in the last paragraph supposes that the combination of business enterprises is 80 comprehensive as to place the resulting coalition in a position of practical monopoly. Such a result is not always attained, however, especially not in the earlier attempts at coalition in any particular branch of industry ; although the endeavor is commonly repeated until at last a virtual monopoly is achieved. But even where no effective monopoly is achieved, a coalition of this kind has a salutary effect, at least temporarily. In almost all cases a consolidation of this kind is able to effect i considerable economies in the cost of production, j as pointed out in an earUer chapter, and such econ- j omies bring relief through enabling the combined i industrial ventures to earn a reasonable profit at a I lower price for their product than before. They are therefore able to go on on a scale of prices which was not remunerative while they stood on their old footing of severalty. But the relief which comes of such measures, so long as competitive selling goes on in rivalry with concerns standing outside the coalition, is only transient. The declining cost of production, and the consequent competitive investment and extension in the industry, presently catches up with the gain in economy ; the margin of advantage in the competition is lost,