s of large production favoring monopoly#. A second
feature favoring monopoly in such industries is the marked advantage
of large production in them. These industries are usually spoken of as
"industries of increasing returns." This advantage is enjoyed in
some degree by every enterprise, but it is gradually neutralized and
limited. The need to extend an expensive physical plant to every point
where customers are to be served, and the very much smaller cost
per unit of delivering large amounts of water, gas, electricity, and
transportation, on the same street, offers a greater inducement
for one competitor to crowd out or buy out the other at a more than
liberal price. Even then, larger net dividends and correspondingly
larger capitalization are secured than were before possible to both
companies combined.

Sec. 7. #Uniformity of products favoring monopoly#. A third feature
favoring monopoly is uniformity in the quality of the furnished. It is
a general truth that competition is most persistent where there is the
greatest range of choice open to the customer, and consequently the
most individual treatment required of the enterpriser. An artist,
even a storekeeper, attracts about him a body of patrons who like his
product (for the merchant's manner and method of dealing are a part
of the quality of his goods), and who cannot be tempted away by slight
differences in price. Rival companies in the stage of competition are
seen to claim superiority for their particular goods and to improve
their service in every way possible. A new telephone company, entering
where a monopoly has held the field, works at once a wonderful
betterment in rates, courtesy, and service. But as the product of all
competitors attains the highest technical standard possible at the
time, the rivalry is reduced to one of price, and it is usually a
"fight to the finish."

Sec. 8. #Franchises favoring monopoly#. A fourth feature favoring
monopoly in these enterprises is the necessity of making permanent and
exceptional use of the public streets and alleys. If this right were
granted by a general law to every citizen, this feature would be
sufficiently implied in the foregoing discussion. As it would be
intolerable to allow private interests to use public property in
whatever way they wished, the legislative body makes special grants in
such cases in view of the circumstances. Not only is the legislature
(or council, or county board of commissioners, etc