Somesuchbusinessesorgroupsofbusinessespossessavirtualmonopolyofthemarket，andcancontroloutputandprices，soastosecureabnormaldividends。Suchcontrolis，tobesure，neverabsolute，itscontrolofpricesbeingsubjecttotwochecks，therestrictionofdemandwhichattendseveryriseofprices，andtheincreasingprobabilityofcompetitionspringingupifprofitsaretoohigh。Butqualifiedmonopolies，earningdividendsfarlargerthanareeconomicallynecessarytosupporttherequiredcapital，areeverywhereinevidence。Trusts，cartels，pools，combines，conferences，andtradeagreementsofvariouspotencyandstringency，pervadethemorehighlyorganisedindustries，substitutingtheprincipleofcombinationforthatofcompetition。Inallmajorbranchesofthetransporttradebylandandsea，inlargesectionsoftheminingindustry，intheironandsteelindustryandinmanybranchesofmachine-making，inmanyofthespecialisedtextiletrades，inthechemicalandothermanufactureswherespecialscientificknowledgecounts，inmanydepartmentsofwholesaleandretaildistribution，and，lastnotleast，inbanking，financeandinsurance，freedomofinvestmentandofcompetitionhavevirtuallydisappeared。Toassumethatfreshstreamsofcapital，labourandbusinessability，
havelibertytoenterthesefieldsofenterprise，andbytheirequalcompetitionwiththebusinessesalreadyinpossessionsotoincreasetheoutput，lowersellingpricesandkeepinterestandprofitsatabare\'costs\'level，isachildishtravestyoftheknownconditionofthesetrades。Toaffirmthatsuchmobilityandlibertyofcompetitionisthesolenormal\'tendency\'，andthatthemonopolisticandcombinativeforcesmerelyrepresentfriction，issograveafalsificationofthefactsastoputoutofcourtthewholemethodofeconomicinterpretationwhichisbasedthereon。Concretecapitalhasnoneofthequalitiesassignedtotheabstractcapitaloftheseeconomists。Itisneitherinfinitelydivisible，norabsolutelymobile，noraccuratelydirected，norlegallyandeconomically\'free\'todisposeitselfinanypartoftheindustrialsystemwherethecurrentinterestorprofitexceedstheaverage。Overlargetractsofindustrycombinationismorenormalandmorepotentthancompetition，andwherethisisnotthecase，themostcompetitivetradeswillbefoundhoneycombedwithobstructiveclots，businessesenjoyingspecialadvantagesandearningcorrespondinglyhighprofits。
§；13。Becausecertainqualitiesofbusinessabilityarerequisite，towitastuteness，keennessofjudgment，calculatingpower，determination，capacityfororganisationandexecutiveability，itissometimesclaimedthatthehighratesofprofitwhichaccruefromsuchbusinessesaswehaveindicatedarereallythecreation，notofmonopolyorcombination，butofthetalentsoftheseentrepreneurs。Buteventhoughitbeadmittedthatsomesuchabilityisessentialtoproduceortomaintainasuccessfulcombination，cantheentireprofitsofsuchacombinationbeimputedtothisabilityorregardedasitsnaturalandproperreward？Takethecommoninstanceofthe\'forestaller\'，whostopsthesupplyofsomecommodityonitswaytoamarket，securesthewholesupplyatcompetitivepricesfromthevariouscontributors，andthensellsitatamonopolypricefixedbyhimself。Aretheprofitsofthiscorneraproductofabilityandarewardofability，andnota\'surplus\'representinganartificiallycontrivedscarcityvalue？
Ortakethecaseofacontractingfirm，whichpersuadesalltheotherfirmsinapositiontocompetetocomeintoanarrangementastoaminimumtender。
Aretheextraprofitsduetosuchanarrangementtoberegardedaswagesofability，becausesometactwasneededtoworkthething？Butsupposewegrantedthewholecontention，andagreedthattheextradividendspaidtoshareholdersinfavouredorprotectedbusinesseswerereallyproducedbytheabilityoftheentrepreneurormanager，whatthen？Itisnotprovedthattheseextraprofitsare\'costs\'，not\'surplus\'。Onthecontrary，thefactthattheycanbetakenasextradividendsorbonusesbytheownersofthecapital，insteadofpassingin\'wagesofability\'totheentrepreneur，isproofpositivethattheyaresurplus。Foriftheywereasubsistencewageofability，orevena\'prize\'，essentialtoevokesomespecialoutputofskillorenergy，theycouldnotbethusdivertedfromtheentrepreneurtotheshareholders。Infact，thereisnoreasontosupposethatanyveryrareorconspicuousabilityisevincedinworkingasuccessfulpoolorcombine，oreveninorganisingasuccessfulbusiness。Stilllessistherereasontosupposethattheprofitsattendingsuchanenterpriseareinanywayproportionatetotheskillorenergyoftheentrepreneur。Everyoneisawarethatthecontraryisthecase。Indeed，sofarasscientific，professional，andbusinessabilityisindustriallyusefulandhasaclaimtoincome，enquiryshowsthatthereisnobettersecurityformobility，freedomofcompetitionandequalityofpayment，thaninthecaseofcapital。Inequalitiesofeconomicconditionsbetweenvariousclassesofourpopulation，involvinginequalitiesofnurtureandofeducation，andofeveryothersortof\'opportunity\'