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Since the 18th Century, Americans have engaged in the pursuit of happiness through the consumption of material things. It is written in the Preamble to the U.S. Constitution that Americans have a right to life, liberty, and the pursuit of happiness. Interestingly, the pursuit has resulted in suicide for more white males 65 years old and over than any other age group. Louisiana is the second most unhealthiest state in America, and 40 million Americans live without any health insurance. These signs of unhappiness have continued to evolve over time. By 1950, Americans produced $43.7 billion worth of manufactured goods, and by 1958, $141 billion. The average annual salary for males was $2,831 in 1958; $1,559 for females. During this time, the American household was classified as husband-wife. In 1920, 86.0 percent were husband-wife; by 1960, this percent declined to 70.0 percent. Divorce accelerated by 1960. During the 1950s, the husband-wife household was already rapidly giving way to a new form-"Single-Parent." If this pursuit of happiness through object consumption is working, then, the reverse would be true. To grasp the social decay occurring in American society today, it is essential to understand the 1920 to 1960 period.
Authors Collins and Preston, who have collaborated on earlier studies of industrial organization and marketing, are here concerned with the relationship between business concentration and profitability in American manufacturing industries. Economic theory states that prices are higher and price-cost margins wider under conditions of monopoly than under those of competition. the problem in applying this theoretical conclusion to empirical analysis and economic policy is that a gap exists between the theoretical concept of monopoly on the one hand and the measurement of concentration on the other. A number of earlier studies have analyzed samples of available data to relate measured concentration to profitability. the present study reviews these previous efforts and provides a common basis for comparison of them. It then analyzes statistical data for the year 1958 in order to obtain an extensive new collection of empirical results. This analysis focuses specifically on the inter-industry variability of price-cost margins, and seeks to explain this variability in terms of differences in concentration and other variables. This title is part of UC Press's Voices Revived program, which commemorates University of California Press's mission to seek out and cultivate the brightest minds and give them voice, reach, and impact. Drawing on a backlist dating to 1893, Voices Revived makes high-quality, peer-reviewed scholarship accessible once again using print-on-demand technology. This title was originally published in 1968.