According to the provisions of China's Anti-monopoly Law, monopolistic behaviors include: the operators reach a monopoly agreement, the operators abuse their dominant market position and the concentration of operators that have or may have the effect of excluding or restricting competition.
The monopoly phenomenon mainly includes the following reasons:
1. Resource monopoly: key resources are owned by an enterprise, including key technologies (such as patents).
2. government creates monopoly: the government gives an enterprise the exclusive right to produce a certain product or service.
3. Natural monopoly: The production efficiency of large-scale production enterprises is superior to that of small enterprises.
first, the benefits of monopoly
(a) when production develops to a certain extent, enterprises unite to form a monopoly in order to obtain higher profits and reduce unnecessary losses caused by competition.
(2) The huge scale of enterprises has hindered the development of other peer enterprises, which is not conducive to the development of other enterprises. Gradually, the number of small enterprises will gradually decrease, thus realizing the monopoly of the industry. After the monopoly, the number of competitors will be greatly reduced, and the production and marketing can be controlled, which will bring huge economic benefits.
(3) It will help to gain more profits, better concentrate on expanding the scale of production, rationally allocate resources, devote more energy to research and development products, realize innovation, and also help to unify planning and form industry standards.
second, the disadvantages of monopoly
(a) of course, monopoly also has its disadvantages, which are more unfavorable to the people. When capital forms a monopoly, enterprises control prices in order to obtain more profits and obtain higher economic benefits, and then more social problems will arise.
(2) It is said that the typical chaebol in South Korea controls the capital market and affects the national government. It can also control the news field through various means, which is more likely to breed corruption, which is unfavorable to the development of ordinary people and society. Of course, China is a socialist country, not a capitalist country.
(3) Monopoly raises costs and reduces competitiveness. Price monopoly raises the whole social cost. Monopoly industries are generally engaged in public undertakings closely related to most people and industries, such as telecommunications, postal services, tap water, electricity, gas, railways, aviation and so on.