i 5 8 I. A. HOURWICH 



competitive level in others. On the other hand, to recoup 

 for the loss in the competitive market, the price may be raised 

 even above the normal monopoly level where the market is 

 controlled by the combination. The raise may perhaps re- 

 duce consumption; still a part of the supply would probably 

 have to be diverted, in any event, from the non-competitive 

 market, in order promptly to meet the increased demand at 

 abnormally low prices in the competitive market; so the ele- 

 ments of the calculation being changed, the maximum re- 

 turns would be produced by a new price. 



Thus where a combination is in practical control of the 

 output, competition of independent producers will not steady 

 prices, but on the contrary will widen the range of price 

 fluctuations beyond what they would be either under free 

 competition or under unrestrained monopoly. 



