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This paper aims to measure the extent of mark-up and monopoly pricing in different sub sectors of the Iranian manufacturing. We measure annually the degree of monopoly pricing and mark-up for sub sectors over the period from 1959 to 2003. A panel data approach is developed and applied to gauge the mark-up and degree of monopoly pricing The results show that in four sub sectors, including chemical, non-ferrous metals, basic metals and machinery, these kinds of pricing are dominated and it is also prevalent in other sub sectors. Capital intensity and increase in the number of firms in each sector cause a reduction in mark-up while trade liberalization leads to an increase in productivity. The experience of liberalization in Iran over a short period of time confirms that mark-up is reduced, productivity is increased and capital intensity is decreased.