than his competitors—if, for instance, he can produce a whole yard of linen in the same labor-time in which his competitors weave half a yard—how will this capitalist act?
He could keep on selling half a yard of linen at the old market price; but this would not have the effect of driving his opponents from the field and enlarging his own market. But his need of a market has increased in the same measure in which his productive power has extended. The more powerful and costly means of production that he has called into existence enable him, it is true, to sell his wares more cheaply, but they compel him at the same time to sell more wares, to get control of a very much greater market for his commodities; consequently, this capitalist will sell his half yard of linen more cheaply than his competitors.
But the capitalist will not sell the whole yard so cheaply as his competitors sell the half yard, although the production of the whole yard costs no more to him than does that of the half yard to the others. Otherwise he would make no extra profit, and would get back in exchange only the cost of production. He might obtain a greater income from having set in motion a larger capital, but not from having made a greater profit on his capital than the others. Moreover, he attains the object he is aiming at if he prices his goods only a small percentage lower than his competitors. He drives them off the field, he wrests from them at least a part of their market, by underselling them.
And finally, let us remember that the current price always stands either above or below the cost of production, according as the sale of a commodity takes place in the favorable or unfavorable period of the industry. Accord- ing as the market price of the yard of linen stands above or below its former cost of production, will the percentage
