Their resources of supply are cut, and the suppliers are bribed and so on. (a) It will see that those who come in competition are discouraged. Monopoly check competition in more than one way e.g.: But the difficulty is that the monopoly will never allow any competition, because that will mean sharing in profits on the one hand and check on arbitrary fixation of prices on the other. This competition must be effective, if monopoly conditions are to be checked. Monopoly can continue only as long as there is no real competition. Moreover, it is apt to prove a costly method.” 5. The method of control whether positive or negative is in short, an exceedingly imperfect means of approximating industry towards the price level and output proper to simple competition. Pigou, “Under any form of state control over private monopoly a considerable gap between the ideal and the actual is likely to remain. There should be provision for public supervision of monopoly houses. It is therefore, desirable that proper publicity should be given to these defects. Monopoly works with some serious irregularities, which usually do not come to the notice of the people. Then another difficulty is that the consumers are spread all over the country and it is usually very difficult to bring them nearer and closer to each other and that too in an effective manner. They will always try to put many hurdles on the way, even if the association comes up, the monopoly will see that it is not forceful arid powerful. The monopoly will always try to see that the consumers associations are not formed. But this proposal too is complex and complicated. It should be vested with the responsibility of bringing to the notice of the Government on the one hand and the society on the other, high handedness of the monopoly. It should give them some reasonable powers and patronage. One effective method of checking and controlling monopoly is that the Government should help in the formation of consumers associations. The monopoly fixes high prices because it knows it fully well that the consumer is not well organised and will take time to organise himself and till then suffer. Then it is also difficult to have some margin of profit uniformly for all commodities, all over the country. Similarly, it will also not like to leak out trade secrets. We know that it is very difficult to determine the cost of production, because the monopoly will never give a correct picture. But it is also not very effective and cannot be put into actual practice. The state can control the monopoly by fixing the profits and the prices and ensure that the industry does not earn undue profit. Monopoly will always try to fix the highest possible price which it can obtain from the customers, so as to earn minimum profit.
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