Joke Collection Website - Bulletin headlines - Why are conscientious companies that fight against monopoly and break market monopoly prices often suppressed collectively?
Why are conscientious companies that fight against monopoly and break market monopoly prices often suppressed collectively?
Complete monopolies cannot set prices at will mainly to maintain market balance. The specific explanation can be explained from the following aspects:
1. The life span of corporate monopoly is generally very short because market demand changes at any time. The so-called demand determines supply. There are many substitutes in the market, such as Nike, which cannot be implemented. Because of the existence of Adidas, Reebok and Li-Ning, the monopoly of enterprises has become increasingly unattainable.
2. State monopolies are relatively overbearing. For example, state monopolies in telecommunications, oil and gas will be based on the residents of a country. Consumption level, national goals and foreign policy are determined by pricing rather than arbitrary pricing, which will be subject to many restrictions. It mainly serves the will of the country
Therefore, a monopoly cannot set prices arbitrarily, but can only obtain more profits and markets
3. Whether in theoretical analysis or social reality, public enterprise monopoly 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 my country's national conditions, in the coming period, antitrust regulations for domestic public utility enterprises should focus on the following aspects: price supervision, ensuring interconnection, prohibiting cross-subsidies, etc.
4. 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. Specifically, the main reasons for the formation of monopoly markets are as follows: the trend of production development, the requirements of economies of scale, and the requirements of development.
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