Because the monopoly market has its own ability to control price and output, they will set the output at the maximum profit point (MC=MR), and the price is the market price at this output
1: Monopoly enterprises are enterprises that enjoy the policy protection given by the state to control social production, manipulate and monopolize the market. There are still some monopoly industries in China, such as: salt (cancelled), tobacco, power supply, finance, real estate, etc. These industries still have the flavor of a planned economy, with exclusive operations. People cannot live without it, and products are your only choice.
Two: Whether in theoretical analysis or social reality, the monopoly of public enterprises has caused many disadvantages. Therefore, introducing competition mechanisms into public utilities and breaking the monopoly of public utilities have become the content of reforms in many countries. In the process of building and improving the socialist market economy, my country's legislative and administrative departments have also continuously taken measures to regulate the monopoly behavior of public utility enterprises. Taking into account China's national conditions, in the coming period, anti-monopoly regulations for domestic public utility enterprises should focus on the following aspects: price supervision, ensuring interconnection, prohibiting cross-subsidies, etc.
Three: The traditional antitrust law lists the monopoly of public enterprises as an exempt object, and only strictly controls operators in terms of service fees and prices. However, with the contemporary development of antitrust laws, public utilities are increasingly subject to antitrust laws. China is formulating an anti-monopoly law, among which the anti-monopoly regulation of public utilities is an inevitable and major issue.
Four: There are many reasons for the formation of monopolies. The most fundamental reason is to establish and maintain a legal or economic barrier. This prevents other companies from entering the market in order to consolidate the monopoly position of the monopoly company. As the only supplier in the market, a monopoly enterprise can easily control the quantity and market price of a certain product in the market, so that it can continuously obtain monopoly profits.
Five: Patents are certain rights granted by the government to inventors. These rights generally refer to the exclusive right to produce, utilize and process the patented object within a certain period of time, so that the inventor can obtain due benefits. After the inventor of a certain product, technology or service owns a patent, he or she has a monopoly on that product, technology or service during the validity period of the patent protection.