Monopoly Monopoly-market in which there is only one seller


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Causes

  • Centralization of production - is the increase in production resulting from the merger of several companies into one and general management. (To survive in this fight, get more profit).
  • The centralization of capital - a capital increase in size, due to consolidation or merger of previously independent capital. For example: the formation of joint stock companies.
  • As a result of government actions (intentional or her special steps).
  • The emergence of shareholder capitalist property where individual private property becomes a brake on the productive forces. This means that at the end of the XIX century. under the influence of scientific inventions (new types of engines and t. e.) needed to build such plants, which was unable to build any capitalist. In addition, now begins the construction of railroads and other large objects. To gain the necessary funds separate capitalist could perhaps through the decades. There is a need for a new form of property that would be able to quickly solve these problems. She became a joint-stock capitalist property resulting from the merger, combining multiple capitalists.
  • Economic crisis.

Consequences

Monopoly position could lead to the following consequences:

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