Monopoly, also known as seller monopoly, monopoly, and monopoly, generally refers to the only seller facing competitive consumers in one or more markets through one or more stages. Contrary to the buyer's monopoly, the monopolist can adjust prices and output at will in the market (not at the same time), and can do so through exclusive legal privileges, control over supply sources, or joint or collaborative actions between enterprises. achieved.
Chinese name
Monopoly
Foreign name
monopoly
Japanese
Monopoly
Classification
Seller's monopoly, buyer's monopoly
Source
"Mencius"
Category
Economic terminology
The meaning of monopoly
Monopoly
The word monopoly (monopoly) comes from "Mencius" "One must seek monopoly and gain it, in order to The Internet market will be profitable from both sides."
Originally it refers to manipulating trade from the high ground of the market, but later it generally refers to control and monopoly.
China has called monopoly "question" since ancient times. In ancient China, salt, iron, and tea were government-run monopolies for a long time. Due to huge profits, once the country encountered a financial crisis, it would inevitably implement a ban system to supplement the shortage of national supplies.
In a capitalist economy, monopoly refers to a small number of large capitalist enterprises that, in order to obtain high profits, manipulate and control the production, sales and prices of goods in one or several sectors through mutual agreement or alliance. .
Based on the provisions of my country’s Anti-Monopoly Law, monopolistic behavior refers to behaviors that eliminate or restrict competition and may eliminate or restrict competition. [1]
A monopoly industry is a situation where there is only one or a very small number of manufacturers in the industry or market. A monopoly market refers to a market organization in which there is only one or a very small number of manufacturers in the entire industry.
In political economy books, it refers to a small number of capitalist enterprises that rely on the huge capital they control, sufficient production and operation scale and market share to manipulate and control one or more companies through agreements, alliances, alliances, equity participation and other methods. Production or circulation of goods in various sectors in order to obtain high profits.
Reasons
It is generally believed that the basic reason for monopoly is entry barriers. That is to say, a monopoly manufacturer can maintain its position as the only seller in its market because other companies cannot Enter the market and compete with it.
Monopoly refers to a combination implemented by a small number of large capitalists in order to jointly control the production, sales and business activities of one or several departments in order to obtain high monopoly profits. It is the deepest economic foundation of imperialism and the economic essence of imperialism.
Monopolies grow out of free competition through government protectionism. In the stage of capitalist development with free competition as its basic feature, in order to capture more surplus value, capitalist enterprises will inevitably adopt advanced production technology and scientific management methods, implement production specialization and collaboration, and improve labor productivity; In the fierce competition, large enterprises often rely on their economic advantages to continuously crowd out and annex small and medium-sized enterprises, so that the production of production materials, labor force and labor products are increasingly concentrated in their own hands. At the same time, the development of the capitalist credit system and joint-stock companies broke through the limitations of individual capital and accelerated the development of capital concentration, thereby also promoting the development of production concentration. When the concentration of production and capital develops to a certain extent, it means that the number of enterprises is reduced. Most of the production in a department is concentrated in the hands of a few or dozens of large enterprises, and it is easier for them to reach agreements and operate together. Departmental production and sales, thus making it possible to create a monopoly; due to the existence of a few large enterprises, small and medium-sized enterprises are in a dominant position. In order to avoid losing both sides in the competition and ensure that each other is profitable, a few large enterprises will also Seek temporary compromise and reach a certain agreement, thereby making the creation of a monopoly necessary. Free competition leads to production concentration, and when production concentration develops to a certain extent, it will inevitably lead to monopoly. This is a general and basic law for the development of free competition capitalism into the stage of monopoly capitalism. At the end of the 19th century and the beginning of the 20th century AD, monopoly had become the basis of all capitalist economic life. [2]
In the development process of capitalist economy, free competition leads to production concentration, and the development of production concentration to a certain stage will inevitably lead to monopoly.
When monopoly replaces free competition and takes the dominant position in economic life, capitalism develops to the stage of imperialism, that is, monopoly capitalism.
There are three main reasons for the formation of a monopoly:
Natural monopoly: The cost of production makes one producer more efficient than a large number of producers. This is the most common form of monopoly.
Resource monopoly: key resources are owned by one company (such as the dubbing industry of wireless television).
Administrative monopoly: The government gives a company the exclusive right to produce a certain product or service.
There is also a monopoly by the government, which is called a monopoly. [3]