A consortium formed by a few big capitalists to 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.
Growing up in the free competition of government protectionism. In the stage of capitalist development characterized by free competition, capitalist enterprises will adopt advanced production technology and scientific management methods for more surplus value.
In the fierce competition, large enterprises often crowd out and annex small and medium-sized enterprises by virtue of their own economic advantages, so that the production of means of production, labor and labor products is increasingly concentrated in their own hands.
Extended data
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.
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 more than two manufacturers to make a profit in this market.
If no one has certain production technology or know-how except monopolists, the market will form a technological monopoly. In the absence of technical barriers and legal barriers, manufacturers establish their monopoly position by setting up barriers.
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.
Baidu encyclopedia-monopoly