CHAPTER  IV

MONOPOLY
The  theory  of  value  under  conditions  of
monopoly  is  naturally  a  good  deal  different
from  the  theory  of  value  under  conditions  of
competition,  but  it  is  not  different  in  the  sense
that,  with  a  view  to  its  construction,  a  complete ­
  re-analysis  of  economic  facts  must  be
made.  All  the  generalisations  concerning
value  which  have  been  laid  down  so  far  apply  to
monopoly  excepting  only  those  which  imply
the  existence  of  rivalry  among  suppliers  of
the  same  thing.  When  competition  is  absent,
as  when  it  is  present,  price  is  determined  by
demand  and  supply,  only  in  the  two  cases
demand  and  supply  play  different  parts.  In
the  latter  case,  competition  being  a  driving
force,  price  is  settled,  so  to  speak,  automatically. ­
  In  the  former  case,  however,  the  constraint ­
  imposed  by  competitive  forces  upon
the  will  of  the  supplier  having  been  abstracted,
demand  and  supply  only  enter  into  the  settlement ­
  of  price  in  the  sense  that  they  are  the
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