r making these goods
may often cause them to be continued in operation at a loss rather than
lose all that they have invested, and because they hope for better days
and a renewal of the demand.

For the sixth law of competition we have: _In any given industry the
tendency toward the death of competition (monopoly) varies directly
with the amount of capital required for each competing unit._ This law
is proven in part by the preceding laws; for when a large capital is
required for each competing unit, the number of competitors will be
small and the tendency toward monopoly will be strong; but it may also
be proven independently. Business men, before they form a combination,
are certain to ask whether new competitors are likely to enter the field
against the combination. Now, as we have seen in very many cases in the
preceding chapters, when there is a great amount of capital required,
new competitors will be very unlikely to enter the field. If there is
but little capital required, they will be very apt to do so, being
tempted by the prospect of large profits at the monopoly's prices. But
they know that the combination will concentrate its strength to fight
them in every way; and if they must invest a great deal of money in
buildings, plant, etc., to start operations, they will be apt to think
twice before they take the field against the combination.

The seventh law of competition is: _In any given industry in which
natural agents are necessary, the tendency toward the inequality of
competition (monopoly) tends to vary directly with the scarcity of
available like natural agents._

The influence of limited natural agents in promoting the growth of
monopolies is a matter of the greatest importance. That the law is true,
is evident upon slight investigation. For if some especial gift of
Nature is a necessity to any industry, and those who are engaged in that
industry can secure all the available gifts of Nature of that sort,
there is no opportunity for new competitors to enter the field.

It is to be noted that in this seventh law we have used in apposition
with the term monopoly, the term "inequality of competition" instead of
"death of competition," as in the preceding laws. We are now in need of
a definition of the term monopoly. Webster defines it as "the sole
control over the sale of any line of goods"; Prof. Newcomb says "a
monopoly is the ownership or command by one or a limited number of
persons of some requisi