However, the existence of monopoly is inevitable, we should protect and encourage monopoly enterprises thanks to the invention, the invention makes developing new science and technology and labor productivity growth . But besides that we should also put a question mark against the monopolies, thanks to the protection of the Government or the monopoly of the control inputs of production. Especially questions to the monopoly of state-owned companies.
As a result, the state companies often do not have the motivation to seek profits, they lack the incentive that the foreign-owned companies usually have and must have to produce goods and services that consumers want and do it at low cost, to achieve a reasonable price. Another problem is that state companies often provide products and services that do not have direct responsibility to the consumer. The result of this is that the distribution of resources disproportionate. The state-owned companies tend to respond to political pressure rather than for trade. The lack of pressure on the economic efficiency of state companies often leads to stifle innovation and development of products and services it provided.
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