There are ten companies each producing 100,000 units at a cost of 90 cents (including all costs but an allowance for dividends on investment) this giving just enough of a margin to each company to cause it to continue in the industry. What immediate effect on prices could a combination consisting of six firms have, assuming that the cost per unit of product and that the output of the independents remain unchanged? Show for each of the prices indicated what the amount of the margin made by the four independent competitors (altogether) and by the combination would be. What less immediate effects would be likely to follow, and why? 18. Is granting patents an interference with trade similar to tariffs? 19. Is it right that the lucky inventor of a popular toy should make $100 a day from it? 20. Is it right that an inventor should by patent laws be able to keep the profits of his business high? CHAPTER 29 PUBLIC POLICY IN RESPECT TO MONOPOLY REFERENCES. _Anderson, B. M., Jr._, Competition versus monopoly the issue of the campaign. Independent, 73: 997-1002. 1912. _Bolen, G. L._, Plain facts as to the trusts and the tariff. 1902. _Brown, W. J._, The prevention and control of monopolies. 1915. _Clark, J. B._, The problem of monopoly. 1904. _Clark, J. B._, and _J. M._, The control of trusts. Ed., 1914. _Clark, J. M._, Rates for public utilities. A. E. Rev., 1: 473-487. 1911. _Collier, W. M._, The trusts. 1900. _Davies, J. E._, Trust laws and unfair competition. 1916. _Durand, E. D._, The trust problem. 1915. See also Q. J. E., 28: 381-416, 664-700. 1913-1914. _Durand, E. D._, The trust legislation of 1914. Q. J. E., 29: 72-97. 1914-1915. _Ely, R. T._, Monopolies and trusts. 1900. _Gray, J. H._, The control of public service corporations. A. E. Rev., 4 (no. 1, supp.): 18-44. 1914. Round table discussion of above, 45-68. _Hotchkiss, W. E._, Recent trust decisions and business. A. E. Rev., 4 (no. 1, supp.): 158-172. 1914. Round table discussion of above, 173-195. _Jenks, J. W._, The trust problem. 1900. _Knauth, O. W._, Capital and monopoly. P. S. Q., 31: 244-259. 1916. _Knauth, O. W._, Competition and capital. Ibid., 30: 578-590. 1915. _Knauth, O. W._, The policy of the United States toward industrial monopoly. 1914. _LeRossignol, J. E._, Monopolies past and present. 1900. _Orth, S. P._ (Ed.), Readings on the relation of government to property and industry. 1915. _Ripley, W. Z._, (Ed.), Trusts, pools and corporations. Ed., 1916. *_Source Book_, 383-385. The Sherman anti-trust act. _Stevens, W. S._, The Clayton act. A. E. Rev., 5: 38-54. 1915. The trade commission act. Ibid., 4: 840-855. 1914. _United States Industrial Commission_, Report. 1898-1901. 19 vols.