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BASIC FORMS OF MONOPOLIES
Basic Forms of Monopolies The basic forms of monopolies are cartels , syndicates , trusts and corporations . A cartel is an alliance of large capitalist enterprises . Its participants agree on the conditions of sale of their goods , the purchase of raw materials and dates of payments , divide the markets among themselves , fix the prices on the goods produced and the raw materials purchased , decide on the quantity of goods to be produced by each participant , etc. The enterprises belonging to a cartel retain their indepen dence .
A syndicate is a monopolist alliance of enterprises , in which the participants lose their commercial independence . The goods are produced independently , but their sale and sometimes the purchase of raw materials are effected through a common office . A trust is a monopolist association in which all the enter prises belonging to it lose their production and commercial independence and merge into a single enterprise , while their owners become share - holders and receive profits according to the number of shares they hold . The management of the production , financial and commercial activities of a trust is effected by a board elected by a meeting of the share - hold ers . The persons elected to the board of a trust are usually holders of a large block of shares . After the passage of the antitrust law in the U.S.A. in 1911 , the trusts began to call themselves companies . For example , Rockefeller's giant oil trust , Standard Oil , divided itself into several companies Standard Oil of New Jersey , Standard Oil of California , etc. All these companies are controlled by the Rockefellers . A corporation is a monopolist association of enterprises of different branches of industry , banks , commercial firms , transport and insurance companies based on common financial interests and common financial dependence on a group of big capitalists who effect control over the enterprises belong ing to the concern . In the U.S.A. the electric industry is controlled by the General Electric Corporation , the aircraft industry is con trolled by the Douglas Aircraft Company , the aluminium industry - by the Mellon concern , and the chemical industry by Du Pont de Nemours and Company . In the automobile industry in 1956 only two monopolies - the General Motors Corporation and the Ford Motor Company - produced and sold 80 per cent of the automobiles . In each of the 43 branches of the manufacturing industry four corporations con centrate in their hands more than 75 per cent of the output , while in 102 branches of industry four of the biggest monopolies turn out from 50 to 75 per cent of the gross production The monopolies not only fail to eliminate the competition The competitive struggle is waged between monopolist associations within them , and between the monopolies and
non - monopolised enterprises . Various methods of pressure , to the point of ruin by commercial machinations , are used against those who do not yield to the monopolies . In the bitter struggle among the monopolies all unfair means are used : bribery , violence , blackmail , sabotage and other criminal offences to the point of physical annihilation of the rivals .
© Connect2Jawed
A syndicate is a monopolist alliance of enterprises , in which the participants lose their commercial independence . The goods are produced independently , but their sale and sometimes the purchase of raw materials are effected through a common office . A trust is a monopolist association in which all the enter prises belonging to it lose their production and commercial independence and merge into a single enterprise , while their owners become share - holders and receive profits according to the number of shares they hold . The management of the production , financial and commercial activities of a trust is effected by a board elected by a meeting of the share - hold ers . The persons elected to the board of a trust are usually holders of a large block of shares . After the passage of the antitrust law in the U.S.A. in 1911 , the trusts began to call themselves companies . For example , Rockefeller's giant oil trust , Standard Oil , divided itself into several companies Standard Oil of New Jersey , Standard Oil of California , etc. All these companies are controlled by the Rockefellers . A corporation is a monopolist association of enterprises of different branches of industry , banks , commercial firms , transport and insurance companies based on common financial interests and common financial dependence on a group of big capitalists who effect control over the enterprises belong ing to the concern . In the U.S.A. the electric industry is controlled by the General Electric Corporation , the aircraft industry is con trolled by the Douglas Aircraft Company , the aluminium industry - by the Mellon concern , and the chemical industry by Du Pont de Nemours and Company . In the automobile industry in 1956 only two monopolies - the General Motors Corporation and the Ford Motor Company - produced and sold 80 per cent of the automobiles . In each of the 43 branches of the manufacturing industry four corporations con centrate in their hands more than 75 per cent of the output , while in 102 branches of industry four of the biggest monopolies turn out from 50 to 75 per cent of the gross production The monopolies not only fail to eliminate the competition The competitive struggle is waged between monopolist associations within them , and between the monopolies and
non - monopolised enterprises . Various methods of pressure , to the point of ruin by commercial machinations , are used against those who do not yield to the monopolies . In the bitter struggle among the monopolies all unfair means are used : bribery , violence , blackmail , sabotage and other criminal offences to the point of physical annihilation of the rivals .
© Connect2Jawed
