. Sec. 14. Monopoly's power to raise prices.

Sec. 1. #Kinds of monopoly.# Monopolies may, for special purposes, be
classified as selling or buying, producing or trading, lasting or
temporary, general or local, monopolies. The terms selling or buying
monopoly explain themselves, tho the latter conflicts with the
etymology.[1] Under conditions of barter the selling and the buying
monopoly would be the same thing in two aspects. A selling monopoly
is by far the more common, but a buying monopoly may be connected with
it. A large oil-refining corporation that sells most of the product
may by various methods succeed in driving out the competitors who
would buy the crude oil. It thus becomes practically the only outlet
for the oil product, and the owners of the land thus must share
their ownership with the buying monopoly by accepting, within certain
limits, the price it fixes. The Hudson Bay Company, dealing in furs,
had practically this sort of power in North America. Many instances
can be found, yet, relatively to the selling monopolies, those of the
buying kind are rare.

A producing monopoly is one controlling the manufacture or the source
of supply of an article; a trading monopoly is one controlling the
avenues of commerce between the source and the consumers.

Monopolies are lasting or temporary, according to the duration of
control. By far the larger number are of the temporary sort, because
high prices strongly stimulate efforts to develop other sources of
supply. Yet the average profits of a monopoly may be large throughout
a succession of periods of high and low prices.

Monopolies are general or local, according to the extent of territory
where their power is felt. At its maximum where transportation and
other costs most effectually shut out competition, monopoly power
shades off to zero on the border-line of competitive territory. The
frequent use of the adjectives partial, limited, and virtual are
implied but usually superfluous recognitions of the relative character
of monopoly.

Sec. 2. #Political sources of monopoly.# Monopoly gets its power from
various sources. A political monopoly derives its power of control
from a special grant from the government, forbidding others to engage
in that business. The typical political monopoly is that conferred
by a crown patent bestowing the exclusive right to carry on a certain
business. A second kind is that conferred by a patent for invention,
or the copyright