I, complete monopoly
1, complete monopoly market: refers to the entire industry only the only one manufacturer of the market organization. More specifically, the conditions of the monopoly market are mainly these three points:
①Only one manufacturer in the market to produce and sell goods.
②The manufacturer produces and sells goods without any similar substitutes.
3) It is extremely difficult or impossible for any other manufacturer to enter the industry.
2. In such a market, apart from any competitive factors, the exclusive monopoly manufacturer controls the production of the whole industry and the sales in the market, so the monopoly manufacturer can control and manipulate the market price. The main reasons for the formation of monopoly are as follows:
1. The exclusive manufacturer controls the supply of all the resources or basic resources for the production of a particular commodity. This exclusive possession of production resources precludes the possibility of other manufacturers in the economy producing the same product.
②The sole proprietor owns the patent rights to produce a certain good. This then allows the exclusive manufacturer to monopolize the production of that product for a certain period of time.
③ Government franchises. The government often implements the policy of monopoly in certain industries, such as the railroad transportation sector, the power supply and water supply sector, and so on, so that the exclusive firm becomes the monopolist in these industries.
④Natural monopoly. The production of some industries is characterized by this: the economies of scale of production need to be in a large range of production and the corresponding huge capital equipment production and operation level in order to be fully reflected, so that the entire industry's output is only produced by a single enterprise to achieve such a scale of production. And as long as the production capacity of this enterprise on this scale of production can be utilized to meet the entire market demand for this type of product. In the production of such products, the industry will always have a certain manufacturer with strong economic strength and other advantages, the first to reach this scale of production, thus monopolizing the production and sales of the industry. This is a natural monopoly. In real economic life, monopoly markets are almost non-existent.
In a nutshell, monopoly refers to the act of excluding and restricting competition by operators using their own mastery of superior resources. And the purpose of antitrust is not to combat a few monopolies, but to oppose the abuse of monopoly.