The above diagram represents how an industry is likely to become more over time due to change or advancement. This process causes rms to become more intensive, meaning that they become economies of at a larger size .As an industry become more concentrated, among rms becomes more likely as it is in the rms' 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 x 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 rm, if it was done by better management, more efcient 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 . \

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