1, the formation of monopoly: resource monopoly means that the resources needed for production are owned by a single enterprise. DeBeers, a diamond company in South Africa, is a typical example. The company has some key resources and once controlled 80% of the world's diamond mines. Although the exclusive ownership of key resources is the potential factor of monopoly, in fact, monopoly is rarely caused by this reason.

2. Reasons why monopoly does not eliminate competition: Monopoly does not have the economic conditions to eliminate competition. Competition is the universal law of commodity economy. After monopoly came into being, it not only did not change the capitalist private ownership of the means of production, but promoted the continued development of the commodity economy, so it was impossible to eliminate competition.