What are the advantages and disadvantages of monopoly?

Talking about the pros and cons of monopoly should be divided into angles, and the pros and cons seen from different positions and angles are different, so we will not favor consumers or businesses from the macro perspective of the whole society.

1. What is a monopoly?

2. Why is a monopoly formed?

3. What are the benefits of monopoly?

4. What are the disadvantages of monopoly?

1. What is a monopoly?

The so-called monopoly refers to the concentration of production and capital.

Concentration of production refers to the process by which the production dates of the means of production, labor, and commodities are concentrated in a small number of large enterprises.

Capital concentration refers to the process by which large capital swallows up small capital, or many small capitals are merged into large capital.

2. Why is a monopoly formed?

When the concentration of production develops to a considerable extent, a very small number of enterprises will unite to manipulate and control the production and sales of their departments, and implement monopolies in order to obtain high profits;

In order to avoid losing both, enterprises will reach a compromise with each other, unite and implement monopoly;

The scale of enterprises is huge, which creates restrictions on competition and can also create monopolies.

3. What are the benefits of monopoly?

Concentrate on big things and form economies of scale;

Conducive to the rational allocation and use of resources;

It is conducive to solving huge technical problems and achieving innovation - such as the research and development of chips;

It is beneficial to reduce production costs – such as electronic products;

It is conducive to controlling the balance of supply and demand, implementing it in a planned way, and eliminating overproduction caused by extravagance and waste and duplicate construction - such as bicycle sharing and communication;

It is conducive to unifying rules, forming industry standards, and putting an end to some chaos.

4. What are the disadvantages of monopoly?

Because of the monopoly, it has enough power, and if it is considered for its own interests, a series of social problems will arise.

Manipulating monopolies** in order to obtain high monopoly profits.

Absolute monopolies with no competition and high profits may experience less stress on employees and a decline in service quality.

All employees are lazy and do not innovate.

The shop is a big bully. Domination in the economy is mainly achieved through the "participatory system" (a system in which monopolies control small enterprises layer by layer by mastering a certain number of **).

The political control of the state apparatus is mainly achieved through a variety of ways of "personal association" (personally serving or assigning ** people to serve as the key governors). - South Korea's Samsung.

Monopoly giants will also control and influence the country's internal affairs, foreign affairs, and social life by controlling various areas of the superstructure such as journalism, science, education, and culture.

It is easy to breed corruption.

Is it a good thing that the richest man is too rich or too rich?

The reason is very simple, the earth is just a little material, as far as the whole society is concerned, some people get too much, it will definitely cause other people to get too little, more waste, less shortage, resulting in ecological imbalance, so it is not a good thing that the richest man is too rich or too rich.

Now many rich people are playing monopoly, and everyone knows the pain caused by monopoly, but there is no way, for example, you install an air conditioner in summer, and a water heater in winter, not to mention high, but also play with our consumers The installation fee is routine, and the installation fee is free when you sell, and when you pay for the air conditioner water heater and buy it home, when the master finally comes to install, we consumers have no autonomy at all, the master says how much money is how much, let it be slaughtered, and there is no place to reason, the whole city is a monopoly, Monopolies without competition are terrible.

Monopoly profits are considerable, but there are many enemies.

The dangers of monopoly to the market are as follows:

1. Economic monopoly in the allocation of market resources.

In a free and competitive market, the enterprise is equal to the marginal cost.

At this time, the monopoly firm's price is higher than that of the competitor, and the output is less than that of the competitor;

2. Due to consumer surplus.

In a monopoly market, the situation of consumers deteriorates and that of producers becomes better. However, in the case of opposite changes in the situation of consumers and producers, it seems unclear how the total efficiency has changed;

3. The business point of the monopoly manufacturer is obviously not optimal, because in the process of moving from the business point of the monopoly manufacturer to the business point of the free competition manufacturer, the surplus of consumers increases, so its situation improves, and in this process, the sales of the monopoly have been higher than its marginal cost, which shows that the monopoly market is less efficient than the free competition market.

Monopoly as an economic phenomenon in capitalist society.

The performance is more obvious in the developed stage. Monopoly is the inevitable result of the development of competition, and its emergence inhibits competition. Lenin.

It has been pointed out that when concentration develops to a certain stage, it can be said that it will naturally lead to monopoly. Because dozens of large enterprises easily come to an agreement with each other; On the other hand, it is precisely the huge scale of the lack of prosperity of enterprises that has caused difficulties in competition and the tendency of monopoly. A monopoly industry is a situation in which there are only one or a very small number of manufacturers in the industry or market.

The monopoly market refers to the market organization of only one or a very small number of manufacturers in the entire industry.

Monopolistic behavior includes the following:

1. The operator reaches a monopoly agreement;

2. Abuse of market dominance by business operators;

3. Concentrations of undertakings that have or may have the effect of eliminating or restricting competition.

Establish an anti-monopoly committee to be responsible for organizing, coordinating, and guiding anti-monopoly work, and perform the following duties:

1. To study and formulate relevant competition policies;

2. Organize surveys, evaluate the overall competition situation in the market, and issue evaluation reports;

3. Formulate and publish anti-monopoly guidelines;

4. Coordinate anti-monopoly administrative law enforcement;

5. Other duties as specified in the regulations.

Legal analysis: 1. Affect the normal play of market signals. 2. Affect the fair competition between enterprises in the industry. 3. Affect the improvement of consumer welfare. 4. Affect the efficiency of economic operation and scientific and technological progress.

Legal basis: Anti-Monopoly Law of the People's Republic of China

Article 1: This Law is enacted so as to prevent and stop monopolistic conduct, protect fair competition in the market, increase the efficiency of economic operations, safeguard the interests of consumers and the public interest, and promote the healthy development of the socialist market economy.

Article 2 This Law shall apply to monopolistic conduct in economic activities within the territory of the People's Republic of China; This Law applies to monopolistic conduct outside the territory of the People's Republic of China that has an impact on the elimination or restriction of competition in the domestic market.

The pros and cons of monopolistic competition are as follows:

Advantages: 1. It is conducive to the large-scale development of enterprises, and allows enterprises to obtain the benefits provided by the large-scale market economy.

2. Although monopoly manufacturers have no competitors in the product market, they will face competition in the capital market.

There are disadvantages: 1. Monopolistic competition will cause uneven economic distribution of each other, and the favorable systems will be used in the monopoly enterprise to get priority resources, so that other regions can not develop well.

2. Monopolistic competition will exacerbate protectionism in various localities, which is not conducive to the development of the national economy. In order to protect the monopoly, a series of policies will be set up to protect the enterprise.

3. Monopolistic competition and related policy and system conflicts, and there will be great differences between the decentralized system and the local protection system for enterprises.