We are in the habit of positing a single Form for each plurality of things to which we give the same name.
[This translation is preferable to the one in Grube/Reeve, which misleadingly suggests that each individual thing has its own peculiar Form.]
If there is a set of things all of which have the same "name", then there is a Form for that set.
By "name" here we should probably understand "general term" or "predicate" (to use the word that Aristotle invented for this kind of "name") - that is, a term that can be applied in the same way to many different things that all have something in common, a term like 'bed' or 'table'. Cf. the next speech in Rep. 596a-b:
Then let's now take any of the manys you like. For example, there are many beds and tables ... but there are only two forms of such furniture, one of the bed and one of the table.
For any set of things to which we apply the term 'table', there is a single Form.
This is the Form of Table, or (perhaps) Tablehood, or (as Plato would say) The Table Itself.
For any set of tables, there is a single Form.
... if there is anything beautiful besides Beauty itself, it is beautiful for no other reason that that it shares in that Beauty. ... nothing else makes it beautiful other than the presence of, or the sharing in, or however you may describe its relationship to that Beauty we mentioned, for I will not insist on the precise nature of the relationship, but that all things are made beautiful by Beauty.
So what the principle tells us can now be fleshed out a bit:
For any set of tables, there is a single Form, and it is in virtue of some relationship to that Form that they are all made to be tables.
That is, it is the Form of Table that makes something a table.
The argument moves from a premise asserting the existence of a plurality of things that have something in common to a conclusion that asserts the existence of something else. But what is this something else?
[Aristotle, in his Peri Ideôn, attributed to the Platonists a more elaborate version of this argument, but it is not found in any of Plato's dialogues.]
This idea is supported by the Allegory of the
Cave in Republic 514ff.
Forms are paradigms, perfect examples of the properties or common features of the things they are invoked to explain. These paradigms are accessible to the mind, and it is by comparison to them that we apply their "names" to objects of sense-perception.
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