Research On The Monopoly Welfare Of Natural Monopoly Industry

Monopoly is very familiar in the hearts of the country's people. One hand, monopoly hinders the establishment and development of the market economy; on the other hand, it creates a special economic term: "Monopoly benefits." Monopoly benefits, as the name implies, is the benefit of monopoly and the excess revenue which is higher than the average social income. "Monopoly benefits" has very far-reaching impact. Some monopoly industries use their monopoly status to enjoy the "benefits" that should not belong to them, thereby expand the income gap between the industries and destroy the social justice.The public welfare would be jeopardized as long as the "Monopoly Benefits" is not removed. "Monopoly benefits" should not be overlooked; "Monopoly Benefit" is one kind of vested interest in the monopolized sector, it undoubtedly would become a barrier to deepen reform and increase public welfare. Only when the "monopoly benefit"is eliminated, the public welfare will increase. Of course, to limit illegal monopoly benefit, the monopoly enterprise has to be reformed. Therefore, the monopolies controlled by the government is derived by the "monopoly benefit", the reform of the monopolies is the focus and purpose of this article.Based on the detailed description of monopolies, control theory, careful analysis about the "monopoly benefits" is made. This article is divided into four major parts include:The first part is the introduction: background of the research, significance of the research, status of the research in domestic and abroad, Research methodology, and other innovations in this article.The second part of this article analyzes the main sources of monopoly profits, profits are relevant with prices, high prices inevitable will bring high profits. How to set scientific and reasonable prices for monopoly products is one of the ways for the government and monopoly industries to establish a good reputation to the public. This chapter describes and evaluates the pricing mechanism under government control; analyzes how the monopoly prices are established. The third part discusses the current status and sources of the"monopoly benefits"in monopoly industries in China; describes the current income situation and the growth in the labor costs in the monopoly industries. This article quoted plenty of official statistics information and summarized this information. This article also discussed the establishment of monopolies and the formation of monopoly benefits. This article also describes the formation of high income, analyzes its establishment from two sources, the income structure and the monopoly benefits.The forth part is based on the above parts of this article; mentions some methods to lower monopoly benefits by policy approaches. This paper recommended three corresponding policies include the market mechanism, government functions, and legal supervision. It focused on market mechanism; drew some foreign market mechanism models; put forward plenty of policy proposals.