1, control and occupy key resources or key raw materials;
2. Patent system;
3. Economies of scale;
4. Access system;
5. The development of market competition itself will lead to the concentration of production. When the concentration of production develops to a certain extent, it will naturally form a monopoly.
Monopoly and competition are inherently contradictory. Due to the lack of competitive pressure and development motivation, coupled with the lack of strong external control and supervision mechanism, the service quality of monopoly industries is often unsatisfactory, which often violates market rules and infringes on consumers' fair trading rights and choice rights. This is a rule, both in China and abroad.
Price monopoly raises the whole social cost. Monopoly industries are generally engaged in public utilities closely related to most people and industries, such as telecommunications, postal services, tap water, electricity, gas, railways, aviation and so on. Because these industries penetrate into all aspects of society, the service prices of these industries are related to the cost of the whole society. The overall efficiency of these industries is directly related to the ability of other industries to participate in international competition.
In the era of planned economy, telecommunications, railways and other departments used to belong to the state administrative departments, but after entering the market, they are still in a monopoly position. Once they begin to pursue profits in the market, they will transfer a large number of consumer interests to their hands through monopoly pricing, so that privileged departments and privileged companies can obtain profits far higher than the competitive market price. In this way, the competitive cost of the whole society will increase.