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 com 
plete 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, automatic 
ally. In the former case, however, the con 
straint imposed by competitive forces upon 
the will of the supplier having been abstracted, 
demand and supply only enter into the settle 
ment of price in the sense that they are the 
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