The above diagram represents how an industry is likely to become more over time due to change or advancement. This process causes firms to become more intensive, meaning that they become economies of at a larger size . As an industry become more concentrated, among firms becomes more likely as it is in the firms' interests to avoid mutually destructive warfare. The rule of the Sherman Act is designed to prevent such behavior, as it states that any attempt to fix prices or otherwise restrain trade is a violation, no ifs, ands or buts! However, this is not to say that all monopolies are bad. The allows industries to become more concentrated, and even allows the domination of one firm, if it was done by better management, more efficient operations or by change or advancement. Firms will invest in R & D projects if the expected exceeds the expected cost of money (i.e., the interest