Commercial monopoly, individual capital, is generally divided into seller monopoly and buyer monopoly. Seller's monopoly means that the only seller in one or more markets, through one or more stages, faces competitive consumers, and the buyer's monopoly is just the opposite. Monopolists can adjust prices and output according to their own interests and needs in the market.

Monopoly comes from free competition. In order to win in the competition for profits, capitalists must adopt new technologies and equipment to expand the scale of production, thus improving labor productivity and reducing production costs. This requires constant capital accumulation, that is, expanding capital through capitalization of surplus value. On the basis of capital accumulation, competition leads to capital concentration.

This is mainly achieved through the merger of large capital with small capital or the establishment of joint-stock companies. Due to capital accumulation and capital concentration, production is increasingly concentrated in a few large enterprises. When production is concentrated in a stage where a department has been controlled by a few large enterprises, monopoly will inevitably form.

Extended data:

Monopoly is divided into the following four types:

1, franchise

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.

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