Inter-Industry Competition, one of the forms of capitalist competition characterised by the struggle between capitalists in different industries for a higher rate of profit on their capital, and for using it most profitably. Capital is transferred spontaneously from one industry to another through inter-industry competition and the proportions of reproduction of social capital are established. As a result of interindustry competition, capital moves from industries with low rates of profit to those with the highest. This leads to declining production in several industries, demand for manufactures exceeding supply and market prices rising above their value so that the rate of profit reaches the average level. At the same time in industries with a high rate of profit infra-industry competition intensifies, production expands, supply begins to exceed demand, and, as a result, market prices and the rate of profit drop because of the extensive inflow of capital, which seeks its most return. When free competition prevails, the transfer of capital from one industry to another in search of the most profitable return produces the average (general) rate of profit. Thus, the law of value spontaneously regulates the distribution of capital, means of production and labour power between the different industries of the capitalist economy via the mechanism of inter-industry competition. The economic relations, which form between capitalists in different industries when they divide the aggregate surplus value produced by the entire working class of the given country, find expression in inter-industry competition. With monopoly capitalism the transfer of capital from industry to industry is hindered. But interindustry competition does not disappear. It facilitates the evening out of the industry rates of profit in the interests of the monopolies.