Net monopoly is a necessary segment of the modern market

A pure monopoly is the creation of such conditions on the market, thanks to which only one company can produce and sell its product, which has no analogues. At the same time, restrictions on market access and full price control can be traced. In other words, a pure monopoly presupposes the dominance of a large monopoly enterprise that fully controls prices. The level of consumer demand is constrained by the establishment of very high prices. Monopolist assesses demand and establishes a price at a level that is able to provide the greatest profitability.

A pure monopoly can be represented by utilities, without the services of which no company can manage (for example, Vodokanal enterprises or state energy suppliers). These are the so-called natural monopolies, whose existence justifies the full satisfaction of public interests.

In rural areas, a pure monopoly is present in the face of enterprises supplying chemical fertilizers, agricultural machinery, and also these can be tribal, seed-growing farms and enterprises providing repair services. The main features of a monopoly can be classified as:

- the presence of only one company that affects prices, while simultaneously adjusting the offer;

- the absence of similar products on the market;

- Controlling the commodity market, the monopoly company does not allow the emergence of new producers.

In other words, the market of pure monopoly is represented by one seller - often state organizations.

The state monopoly with the use of pricing policy can solve problems of a different nature, namely:

- fixing prices below the cost of goods of social value to create the necessary standard of living for the population;

- the appointment of a price taking into account the coverage of costs or the receipt of sufficient incomes;

- the decision to establish an inflated price in order to reduce consumption.

It should be noted that in the classical sense, there is no pure monopoly in reality. There is always a risk of potential competition from imported goods. In the event of a confrontation between one seller and one buyer, a so-called two-way monopoly arises.

Under monopoly conditions, price can not be a given value. It is established by the monopolist himself with the definition of the size of the offers of goods, taking into account the demand and costs.

The price strategy plays a huge role in these conditions of management. So, a monopoly company takes into account that the volumes of the produced goods are directly proportional to their possible selling price.

Therefore, to obtain maximum profit, the subject can use a tool such as price discrimination, based on the establishment of different prices for the same type of goods. However, the difference in prices is not related to costs. The main purpose of such a mechanism is to use every opportunity to achieve the maximum price per unit of goods.