Complete monopoly market refers to the market structure with only one supplier in the whole industry, and complete monopoly is a very special case.
Market monopoly is a bad trading behavior in the securities trading market. In order to control the market situation for a long time, market monopolists concentrate a lot of money on the trading of certain securities, which makes ordinary investors fall for it and monopolists take advantage of it. There are three common manipulation methods: market monopolists use large sums of money to secretly buy most of a stock to reduce trading chips, while trying to make the stock market rise, create a bullish atmosphere, raise prices and induce ordinary retail investors to follow suit. After the stock rises to a certain level, it will be concentrated to make a profit. Market manipulators concentrated on selling a large number of stocks, which made the chips of stocks soar, forced the stock price to fall, and caused panic among retail investors.
A very important reason for the formation of market monopoly is the reduction of marginal cost, that is, the more users, the greater the output and the lower the cost.
Technology patents may also cause monopoly. In the evolution of technology or system, once people choose a certain path of technology development and evolution, they are likely to follow this path instead of jumping to another path easily. In other words, in multi-step selection, there is no path dependence in the game where each step can be shuffled. If this selection depends on the result of the last selection, it will produce path dependence.
Financial subsidies can also cause monopoly. For example, many local governments in China subsidize residents to use electricity, resulting in low electricity prices. Many people buy electric heating equipment and use subsidized electricity prices to gain benefits, which has caused great waste of resources. Energy subsidies can also cause environmental damage. As we all know, generally speaking, the use of energy will have a negative impact on the environment. As a society, it is a welfare loss, but this loss cannot be reflected in the production cost of enterprises. This situation is called externality. Externality needs to be corrected by the government, and the way to correct it is to add social losses as costs to the product prices of enterprises, otherwise the energy products produced by enterprises and the damage to the environment will deviate from the optimal equilibrium level. Therefore, in order to optimize the allocation of resources and reduce environmental pollution, the government should not only cancel the price subsidies for energy, but also try to internalize the external costs of enterprises, that is, levy environmental taxes on energy use. It should be pointed out that besides negative externalities, there are positive externalities, such as beekeeping and education, which are worthy of recognition and need to be promoted. The government can also promote social welfare by rewarding enterprises with positive externalities.
Monopoly products have many special forms. Monopoly products are irreplaceable, and its demand curve is downward, so in order to maximize profits, monopolists will take some special measures.