Exclusive production resources:
The exclusive manufacturer controls the supply of all resources or basic resources for producing a certain commodity.
Patent right:
An exclusive manufacturer has the patent right to produce a certain commodity, and the manufacturer can monopolize the production of the product for a certain period of time.
Franchise rights of relevant departments:
Relevant departments often implement monopoly policies in certain industries, such as railway transportation departments, power supply and water supply departments, etc. So exclusive enterprises become monopolists in these industries.
Natural monopoly:
The production of some industries has such characteristics: the economies of scale of enterprise production need to be fully reflected in a large output range and the corresponding production and operation level of huge capital equipment, so that the output of the whole industry can only be achieved by one enterprise. And as long as we give full play to the production capacity of this enterprise on this production scale, we can meet the demand of the whole market for this product. In the production of such products, there will always be a manufacturer in the industry who will take the lead in reaching this production scale with strong economic strength and other advantages, thus monopolizing the production and sales of the whole industry. This is natural monopoly.
: monopoly reasons:
(1) Legal obstacles.
Some exclusive franchise privileges are stipulated and protected by law, and patent rights and copyrights are monopolies permitted by law. In order to encourage invention, most countries have patent laws, which shows that patent monopoly is caused by legal barriers. On some occasions, the relevant departments grant a manufacturer the exclusive right to operate, such as a tobacco company; Sometimes, the relevant departments grant the privilege of exclusive operation through bidding competition and contract.
(2) economies of scale and natural monopoly.
If a product needs a lot of fixed equipment investment, and mass production can greatly reduce the cost, then a large manufacturer may become the only manufacturer in the industry. When a large manufacturer supplies all the market demand, the average cost is the lowest, and it is difficult for two or more manufacturers to make a profit in this market. In this case, the manufacturer has formed a natural monopoly.
(3) Technology and strategic monopoly.
If no one has certain production technology or know-how except monopolist, the market will naturally form a technological monopoly, such as the formula of Coca-Cola. In the absence of technical barriers and legal barriers, manufacturers build barriers to establish or consolidate their monopoly position, which is strategic monopoly.
(4) Other obstacles.
The above obstacles are not exhaustive, nor are they necessarily mutually exclusive. If the manufacturer controls the supply of a certain raw material. Any barrier that prevents competitors from entering the market is the cause of monopoly.