Monopoly will lead to lack of competition. Without competition, there would be no supervision. Monopoly enterprises can do whatever they want. They use the exclusive operation of a product to make huge profits, buy and sell hard, control the price and break the market balance, which will greatly reduce the fairness of the industry, destroy the market order and harm the interests of the country and consumers.
Monopoly and competition are inherently contradictory. Due to the lack of competitive pressure and development motivation, coupled with the lack of strong external control and supervision mechanism, the service quality of monopoly industries is often unsatisfactory, which often violates market rules and infringes on consumers' fair trading rights and choice rights.
Extended data:
In the development of capitalist economy, free competition leads to concentrated production, and when it reaches a certain stage, it will inevitably lead to monopoly. When monopoly replaces free competition and occupies a dominant position in economic life, capitalism develops to the stage of imperialism, that is, monopoly capitalism.
There are three main reasons for the formation of monopoly:
Natural monopoly: the cost of production makes one producer more efficient than a large number of producers. This is the most common form of monopoly.
Resource monopoly: key resources are owned by one enterprise (such as the dubbing industry of wireless TV).
Administrative monopoly: The government gives enterprises the exclusive right to produce a certain product or service.
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