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. In some cases, the government grants exclusive rights to manufacturers; Sometimes the government grants the privilege of exclusive operation by bidding for contracts after competition.
2. Natural monopoly:
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 two or more manufacturers to make a profit in this market. In this case, the manufacturer has formed a natural monopoly.
3. Strategic monopoly:
If no one has certain production technology or know-how except monopolists, the market will naturally form a technological monopoly. In the absence of technical barriers and legal barriers, manufacturers build barriers to establish or consolidate their monopoly position, which is strategic monopoly.
4. Other monopoly 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.
Legal basis: People's Republic of China (PRC) Company Law.
Article 3 A company is an enterprise legal person, which has independent legal person property and enjoys legal person property rights. The company is liable for its debts with all its property.
Shareholders of a limited liability company shall be liable to the company to the extent of their subscribed capital contribution; Shareholders of a joint stock limited company shall be liable to the company to the extent of the shares subscribed by them.
Article 63 If the shareholders of a one-person limited liability company cannot prove that the company's property is independent of the shareholders' own property, they shall be jointly and severally liable for the company's debts.