Market structures: types and defining features. market power

Market- a system of relationships in which the bonds of buyers and sellers are so loose that the prices of the same good tend to level off quickly. Markets take many different forms.

Some markets are local, others are national, international. The market arose at the stage of barbarism and throughout history has performed a creative function. It opened up space for entrepreneurial activity, actively influenced the formation of the production and personal needs of the population.

The mechanism of the market is the mechanism of progress.

Market mechanism- the mechanism of interconnection and interaction of the main elements of the market: supply, demand, price, competition and the basic economic laws of the market. The fur market acts as a coercive fur, forcing entrepreneurs to act, ultimately for the benefit of consumers. Fur market - fur price formation and distribution of resources, fur interaction of sellers and purchase over production and consumption. Special market fur-each element is closely related to the price!

The market performs certain functions:

Gives signals to production for the development of certain goods and services, their increase or reduction;

Balances supply and demand;

Ensures the balance of the economy;

Based on the differentiation of commodity producers, it leads to the establishment of a new society that is progressive in life;

This is a kind of engine of scientific and technological progress;

Objectively forms a body of skilled entrepreneurs, disciplines the subjects of market relations.

The free market is characterized by the following features:

An unlimited number of participants in market relations and free competition between them;

Free access to any type of economic activity of all members of society;

Unlimited freedom of movement of capital and labor;

Each participant has complete information about the market;

Spontaneous price fixing in the course of free competition;

In a free market, no participant is able to change the market situation at his own discretion.

Market Forms:

Personal contact (prices are set in advance, before the buying and selling process)

Impersonal contact (prices are added directly in the process of buying and selling)

Market structure and infrastructure

The market as a developed system of commodity exchange relations is a system of separate interconnected markets, which means that it has its own structure and infrastructure.

The structure of the market is the internal structure, location, order of individual elements of the market, their share in the total volume of the market.

Market Structure Classification

according to the economic purpose of objects of market relations - the market of goods and services; the market for means of production; labor market; investment market; financial market.

by geographical location - local market; regional market; national market; world market.

by the degree of restriction of competition - a monopolistic market; oligopolistic market; market of monopolistic competition; perfect competition market.

by industry - automotive market; computer market; textile market; agricultural market, etc.

by the nature of sales - the wholesale market; retail market.

Some of the selected markets are also heterogeneous and have their own structure. Thus, the commodity market includes the consumer market (the market for essentials, the market for durable goods, etc.), the market for investment goods (goods for industrial purposes) and the market for information.

No less many-sided and diverse is the financial market, where the subject of sale and purchase is money provided for use in various forms. The financial market consists of an investment market (long-term capital investments), a credit and loan market, a securities market (primary, associated with the issue of securities, and a secondary one, intended for their redistribution), monetary (national currency) and foreign exchange markets. A developed market requires a developed infrastructure.

The infrastructure of a market economy is a set of interconnected specialized institutions operating within specific markets and performing certain functions to ensure the normal mode of their functioning. Market infrastructure institutions are understood as a set of enterprises that ensure the functioning of market relations, the successful operation of all types of markets. The infrastructure activities include:

activities for the collection, compilation and dissemination of economic information;

special market research activities in order to increase sales; activity on public presentation of information about business entities, goods and services; activities to assess individual business entities and tools for their activities.

The market infrastructure performs certain functions

In general, the infrastructure of the modern market can be represented as a diagram

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Market structure is a complex concept that has many aspects. It is determined by the nature of the objects of transactions in the market. There are markets for services and products, factors of production (capital, labor, land), durable goods (more than a year) and non-durable goods (up to one year). Classifying market structures should be based on the definition of the nature of the product and the number of sellers.

Market structure

The structure of the market indicates the number of buyers and sellers, their share in the amount of goods sold and bought, the degree of standardization of products and the ease of entering and exiting the market.

Perfect competition and pure monopoly are the two extremes that market structures have. Only one firm in a purely monopoly structure implements the entire offer of a particular product, the emergence of competitors is impossible.

Perfect competition is just the opposite. In reality, markets are somewhere between these two extremes. However, limiting cases are useful for understanding many of the problems and understanding the intermediate options that market structures have.

Signs by which markets can be divided and their classification

The concept of "market" often implies a combination of many types and types of markets, which differ from each other in various ways. There is no generally accepted classification, but despite this, markets can be divided into groups according to certain criteria: spatial, functional, organizational. The following groups are distinguished on the basis of organizational, that is, according to the degree to which competition is limited:

• perfect competition;
• the market is purely monopolistic;
• oligopolistic market;
• monopolistic competition.

Market structures and competition

There are several market models according to the degree of monopolization (restriction of competition). Competition is a very important factor that affects the behavior of consumers and producers. It is determined by the extent to which market participants can influence the prices of goods that are sold on it. The smaller this influence, the more competitive the market is.

A brief description of the models can be depicted as follows. A very large number of small firms exist in conditions of perfect (pure) competition. They produce the same (standardized) product, there are no barriers to entry into a particular industry. In other words, the product can be released by any desired company.

The conditions of a pure monopoly market structure, on the contrary, presuppose the presence of a single firm as a seller, an undifferentiated product, as well as various barriers that exist to the entry of producers into the industry.

What is characteristic of monopolistic competition? A fairly large number of large firms that produce a differentiated product (for example, shoes, clothing), as well as fairly free entry into one industry or another.

An oligopoly is a market structure where a small number of large sellers operate, which can affect the cost of goods, the volume of supply. In addition, it is characterized by the difficulty of entering the relevant industry.

Classification of markets from the point of view of buyers

Note, before looking at the various market structures in more detail, that this classification is based on the number of sellers and their behavior. However, in the market, as you know, there are two subjects - buyers and sellers. From the point of view of buyers and their number, the following types are distinguished:

• monopsony, in which only one buyer dominates the market and there are many sellers (a rather unusual situation that is extremely rare);
• oligopsony, when there are several large buyers who can dictate their terms to the market, as well as a competitive market with many buyers represented on it.

Classification of market structures is most often carried out on the basis of competitiveness. From this point of view, 2 varieties are distinguished - the market of perfect (free) competition, and imperfect, which, in turn, is divided into oligopolistic, monopolistic and monopolistic competition markets.

Perfect Competition

The main features that define this market are the following:

• many small firms that produce homogeneous (homogeneous) goods;
• the absence of any restrictions on the flow of capital between industries;
• complete information, perfect knowledge by producers and consumers of the market;
• lack of price control by consumers and producers.

Perfect competition takes place in areas of activity in which there are quite a lot of small buyers and sellers of the same (identical) product, so none of them can affect its price. The price is determined here by the free play of supply and demand in accordance with the laws of the functioning of the market. The existence of a large number of sellers and buyers means that each of them has the same information about the market and finds the current price level, which he cannot change, since the market dictates the price of the goods. This situation allows new manufacturers to start their activities on equal terms with existing sellers. Producers, on the other hand, can leave the market, get out of it without hindrance. Freedom of movement means a constant change in the number of producers. The remaining sellers, at the same time, cannot control the market, since there are a lot of them and they are small participants.

Imperfect Competition

Markets where either sellers or buyers can influence the price are said to be imperfectly competitive. For example, these are markets for cars, signature restaurant dishes, etc.

Individual sellers in imperfectly competitive markets can influence the price of the products they produce. Of course, in an effort to maximize profits, manufacturers take into account this possibility. In practice, the features of three types of markets with imperfect competition are most important: monopoly, oligopoly and monopolistic competition. In each of them, as in perfectly competitive markets, there are many sellers, and at the same time, none of them can influence the market economy by their own actions.

Imperfect competition takes various forms. The classification of market structures related to it includes four main forms:

1. Pure monopoly. In this case, production is focused on only one firm or corporation that produces a particular type of product. Of course, the manufacturer can control the price of the goods very significantly.
2. Duopoly. It happens when the production of a homogeneous product is carried out by two firms. Each of them can only partially control prices.
3. Oligopoly. This is a market structure where a fairly small number of firms operate. At the same time, the ability to control prices is more limited than in a duopoly. Corporations (firms) produce homogeneous products with little possible differentiation.
4. Monopolistic competition. If it is available, there are many manufacturers that produce products that are differentiated, but homogeneous in terms of functionality. Differentiation in this case can be both real and imaginary. There is very little price control.

Situations in real markets

From what has been said above, it is clear that market structures have two poles. The first is a perfectly competitive market. The other pole is pure monopoly. Both should be considered as highly conditional. The fact is that real markets can be located closer to the first or second pole. It is very difficult to recognize the existence of a pure monopoly. Indeed, for products produced by a monopoly, it is almost always possible to find a substitute product (substitute).

In addition, in the conditions of international open trade, it is possible to purchase, instead of a national product, a similar foreign one, which will be close to it. It is difficult to imagine, on the other hand, a market structure that corresponds to pure competition. The market for agricultural products is considered to meet its requirements. This is largely true. However, with limited plots of land, it is not easy to meet the requirements of free entry into it. In addition, manufacturers in this market usually do not enter directly into it. They work on exchange orders or under contracts.

natural monopoly

In connection with the foregoing, a natural monopoly can be singled out. This is a pure monopoly, but at the same time due not to artificial barriers to entry into a particular industry, but to efficiency-related reasons, when the activity of one firm is obviously more efficient than the presence of competing organizations. There are many examples of natural monopoly: local provision of gas, electricity, telephone services, etc.

Pure monopoly

Describing the main market structures, let's say a few words about pure monopoly. This is a situation in which there is only one seller of a product that has no close substitutes. Also, this term refers to the sole seller of this product. In sharp contrast to a competitive market is a market dominated by a monopoly. There is only one source of supply from buyers who want to buy the monopolist's product. This firm has no rival sellers that compete with it in the market.

Pure monopoly as a concept is abstract. There are very few products (if any) for which no substitutes can be found. For example, the postal service is only at first glance the only provider that provides letter delivery services. However, they can be replaced by telecommunications, including electronic messaging, as well as express delivery services.

Oligopoly

We continue to describe the types of market structures. Oligopoly refers to the existence of a small number of producers of goods in the market, acting together. A characteristic feature is that they are not numerous and can individually affect the market. Duopoly is the simplest case of oligopoly.

Allocate an oligopoly of the 1st and 2nd type. The oligopoly of the first type is otherwise called pure. It has branches in market structures characterized by large enterprises and perfectly homogeneous products. Oil companies are an example. Differentiated, or the second type of oligopoly, is a market structure where there is a differentiated product that is sold by several producers. Let's move on to the description of monopolistic competition.

Monopolistic competition

Highlighting the types of market structures, it should also be noted monopolistic competition. It is carried out when many sellers compete with each other in order to sell a differentiated product on the market, while new producers may appear.

The following characteristic features of monopolistic competition can be distinguished.

1. The product of the firm trading on the market is an imperfect substitute for the product sold by other producers.
2. There are a fairly large number of sellers, and each of them satisfies a small, but at the same time, not a microscopic share of the demand for a particular type of product. The size of the shares of firms under monopolistic competition exceeds 1%. Each of them typically accounts for 1 to 10% of all sales in the market.
3. Sellers in the marketplace do not take competitors' reactions into account when choosing how much to price their products or when determining annual sales.
4. There are conditions for free entry and exit to the market of various manufacturers. New sellers are attracted by favorable market conditions. Meanwhile, entering the market is not very easy, as with perfect competition. New sellers often struggle with services and brands that are new to buyers. Therefore, firms with an established reputation are able to maintain an advantage over new competitors.

These are the main market structures. As you can see, there are quite a few of them, and some of them are not found in their pure form. The market and market structures are major topics in economics and should be studied as well as possible.

The market expresses the totality of relations regarding the sale and purchase of certain types of goods. In each of the markets, purchase and sale relations arise between different entities acting either as sellers or as buyers.

The main elements of the market are:

In order for the market to function successfully, three conditions are necessary: ​​the presence of private property in the economy, free prices and competition.

What are the functions of the market?

1. Regulatory - the market acts as a regulator of production through supply and demand. Through the law of demand, he establishes the necessary proportions in the economy.
2. Stimulating - by means of prices, the market stimulates the introduction of scientific and technological progress into production, reducing production costs and increasing quality, as well as expanding the range of goods and services.
3. Information - gives objective information about the socially necessary quantity, range and quality of those goods and services that are supplied to it.
4. Intermediary - in a market economy, the consumer has the opportunity to choose the optimal supplier of products.
5. Sanitizing wound cleans social production from economically weak, unviable economic units and encourages the development of efficient and promising firms.
6. Social - the market differentiates the income of market participants.

What is the market structure?

Market structure:

1. by market objects

• market for goods and services
• capital market
• labor market
• financial market
• information market

2. by geographic location

• local
• regional
• National
• world

3. according to the mechanism of functioning

• free competition market
• monopolized market
• regulated market

4. by degree of saturation

• equilibrium market
• scarce market
• excess market

5. in accordance with applicable law

• legal market
• illegal market

What is a market economy?

The market economy is characterized as a system based on private property, freedom of choice and competition, which relies on personal interests, limits the role of government. The market economy guarantees, first of all, the freedom of the consumer, which is expressed in the freedom of consumer choice in the market of goods and services. Self-interest is the main motive and the main driving force of the economy. For consumers this interest is utility maximization, for producers it is profit maximization. Freedom of choice becomes the basis of competition.

Perfect competition means:

• many buyers and sellers
• homogeneity of goods and services,
• no price discrimination
• full mobility of all resources,
• absolute price awareness.

In reality, there are circumstances that deviate significantly from the ideal and turn perfect competition into imperfect. This means that economic freedom exists as a potentiality, as an opportunity, the transformation of which into reality is modified by many circumstances and, ultimately, by the level of economic development.

The basis of a market economy is private property. It is a guarantee of compliance with voluntarily concluded contracts and non-intervention of third parties.

The classical market economy proceeds from the limited role of government intervention in the economy. The government is necessary only as a body that has determined the rules of the market game and monitors the implementation of these rules.

The structure of the market is the main characteristics of the market, which include: the number and size of firms, the degree of similarity or difference between the products of different firms, the ease of entry into and exit from a particular market, the availability of market information.

The characteristic of the market as a set or arena of acts of sale and purchase can be revealed through its structure, system and infrastructure.

The structure of the market is the internal structure, location, order of individual elements of the market, their share in the total volume of the market. The features of any structure are:

• a) close relationship between its elements;
• b) a certain stability of these connections;
• c) integrity, the totality of these elements.

The market has a complex structure and covers all spheres of the economy with its influence. The economic structure is determined by:

• * forms of ownership (state, private, collective, mixed);
• * the structure of commodity producers (state, rental, cooperative, private enterprises, self-employment enterprises), which depends on the share in the overall economy of one form or another of economic entities;
• * features of the sphere of commodity circulation;
• * the level of privatization and denationalization of structural divisions of the economy;
• * types of trade used in the country.

These features leave a peculiar imprint on the market system, which acquires specific features.

Studies of the structuring of markets allow us to identify the main types of markets. Markets for goods and services (Consumer market), which in our country until recently consisted of state and cooperative trade enterprises, public catering, collective farm markets and small enterprises of private, family and individual trade.

This group includes markets:

• * consumer goods, food and non-food products;
• * service markets: household, transport, utilities;
• * housing markets 3 Until recently, the housing market in our country existed in the form of the sale and purchase of private houses, dachas and other properties of this kind, as well as cooperative apartments that could be sold and bought. In connection with the privatization of the public housing sector, one can expect the formation of a full-fledged, and not limited to a narrow zone of exchange or shadow sale "by agreement" housing market, covering all types of living space. This will put an end to the glaring social injustice when some people (often wealthy) get housing for free, while others buy at full price. and non-industrial buildings.

Markets for factors of production. They include:

• * real estate markets;
• * tools;
• * raw materials and materials;
• * energy resources;
• * mineral.

Financial markets. It:

• * capital markets, t. investment The investment market is one of the varieties of the money market, in which the object of market relations is capital investment. markets;
• * credit markets;
• * securities markets Until recently, the securities market was represented only by the purchase and sale of government bonds, lottery tickets. Currently, there is a sale and purchase of shares, bonds, bank notes, checks, letters of credit, bills of exchange and other types of monetary obligations, represented by shares, bonds, options, warrants, futures contracts, etc.;
• * Monetary and Monetary The market for money and currency was almost officially absent in our economy or was of a shadow nature. In an extremely limited form, the foreign exchange market covered only the sphere of foreign economic relations. The normal functioning of this market required the creation of stock and currency exchanges, which sell and buy currency for rubles at the world, state, free and auction rates. markets.

Smart Product Markets - Innovation Market for innovation, i.e. innovations, inventions, rationalization proposals, practically also absent in our economy. The transition to a market economy gives grounds to consider innovations as a commodity that should be sold at market prices, which should undoubtedly lead to an acceleration of scientific and technological progress, inventions, information services, works of literature and art.

labor markets. They represent an economic form of the movement of labor resources, in which the labor force migrates in accordance with the laws of a market economy. In our economy, labor power was not an object of free sale and purchase due to its planned distribution, non-economic coercion to work and state wage rates, and the absence of a free system of hiring and firing. Until recently, the commodity nature of labor power was denied. The development of the labor market implies the recognition of each individual's right to freely sell his labor force at his own choice, desire and at a market price on the basis of a contract between an employee and an employer.

Regional markets: local, domestic, national markets: foreign, international markets.

In addition to them, there are also:

The market for information products is a special market, the subject of sale here are books, newspapers, paintings, various types of advertising and a great many other items and activities that provide people with the necessary information. We have such a market. But if we understand the information product in the broad sense of the word, including the intellectual product, i.e. scientific, cultural, spiritual, educational product, then the market for such products is only being formed. A certain distribution is received as an object of sale and purchase of computer programs.

The license market is part of the innovation market. The object of purchase and sale here are patent and non-patent licenses for the transfer of inventions, technological experience, industrial sectors and commercial knowledge, the use of trademarks, etc. This is a trade in technology. In modern conditions, licensing agreements are most widely used in international practice.

on the topic: “Market and Market Structures”

Introduction

1.1 The concept and conditions for the existence of the market.

1.2 Functions of the market. Advantages and disadvantages of the market mechanism.

1.3 Structure and types of markets.

Chapter 2. Market structures.

2.1 Perfect competition, its essence and meaning.

2.2 Characteristic features of a monopoly. Monopoly in Russia.

2.3 Features of monopolistic competition

2.4 Oligopoly as a modern market structure.

Conclusion

List of used literature
Introduction

The current economic situation in Russia places increasing demands on economic knowledge and understanding. Business urgently requires the necessary literacy of its leaders. And other sections of Russian society also need a certain level of economic knowledge in order to understand the world in which they live and in which they will live. Now it is practically impossible to take an active social position, to realize what is happening around us, to find one's place in the turbulent stream of life, to increase the chances of obtaining the necessary benefits without armed with ideas about the market economy, without receiving and filtering basic knowledge in the field through one's own brain. economy and entrepreneurship.

Knowledge of the market structure is necessary in order to determine the possible sales volumes at different price levels, and how competing firms will behave under the influence of the steps taken. We can say that the structure of the market determines the degree of its competitiveness. Currently, according to this criterion, the following types of markets are distinguished: perfect competition, monopoly, monopolistic competition and oligopoly. With the exception of pure or perfect competition, all other structures characterize an imperfectly competitive market.

The purpose of this work is to highlight the main theoretical issues of the concept of the market and market structures.

The basis of the country's economy is made up of large enterprises that were created in the planned economy and are still the only producers of many goods. This distinguishes the Russian market from a pure market, where there are many sellers of similar goods and just as many buyers. The production of enterprises is measured in different monetary units, which means that for each product there is a lot, and not just one price (in cash and non-cash rubles, in bill and barter rubles, in conventional units, etc.). Market reforms have not yet been completed, and therefore the circle of participants in market relations and the rules of their behavior, including “market” laws, have not yet been fully formed. The market structure is divided into many separate markets, both by groups of goods and by territory. The markets are poorly connected with each other and therefore there are unreasonably large differences in the price of the same product that is sold in different cities of the country. Market relations are violated and even replaced by illegal norms of behavior of the shadow economy. These and a number of other reasons distort market prices in Russia and distinguish the Russian economy from the economies of other countries.

The concept and conditions for the existence of the market.

The market is not only a general economic category inherent to one degree or another in all stages of the development of civilization, but it is also a complex socio-philosophical concept. It is not limited to the economic sphere at all. As a result of the natural-historical development of human society, the market includes historical, national, cultural, religious, psychological features of the development of peoples who have absorbed all the wealth of centuries-old traditions of the joint organization of cultural and economic life. This determines the features of the modern market and the market system in various countries. The market has taken place in all civilizations, but its role in them varies considerably. The fact that market relations are still far from perfect today may be explained by the fact that perfection is generally unattainable in nature. In general, the concept of a market is a system of economic relations that develop in the process of production, circulation and distribution of goods, as well as the movement of funds. The development of the market takes place together with the development of commodity production, involving in the exchange not only the products produced, but also products that are not the result of labor (land, wild forest). Under the dominance of market relations, all relations of people in society are covered by buying and selling.

The above definitions of the market are incomplete and one-sided. The market is a system of economic relations between people, enterprises, states, based primarily on the principle that everything in the world is sold and bought, exchanged on a free basis, without coercion, but subject to the rules of payment. In other words, The market is economic relations built on the basis of market laws and principles.

The most important conditions for the emergence of the market are the social division of labor and specialization. The first of these categories means that in any more or less numerous community of people, none of the participants in the economy can live on the basis of complete self-sufficiency with all production resources, all economic benefits. Different groups of producers are engaged in separate types of economic activity. This means specialization in the production of certain goods and services. The condition for the emergence of the market is the so-called economic isolation, or economic autonomy of market entities. Economic autonomy means that only the manufacturer himself decides what to produce, how to produce, to whom and where to sell the created products, since he is completely independent and independent in making economic decisions. And, finally, an important condition for the emergence of the market is the free exchange of resources. Only free exchange, existing in spontaneous (spontaneous) orders, allows the formation of free prices, which will prompt economic agents the most effective directions for their activities.

1.2 Functions of the market. Advantages and disadvantages of the market mechanism.

The essence of the market finds its expression in its economic and social functions. World and national experience shows that the market has a huge impact on all aspects of society. The following main economic functions of the market can be distinguished:

1. Information function. Its essence lies in the fact that through a system of a number of indicators (price, percentages, quantity, quality and range of goods and services, etc.), the market, like a giant computer, collects, processes and issues generalized information within the economic territory which it covers, informs society about the state of the economy.

2. intermediary function. The market unites economically isolated commodity producers and consumers into a single system. As a result, sellers and buyers find each other, each of them has the opportunity to choose both the right buyer and the right seller.

3. regulatory function. The market provides answers to questions:

what to produce? how to produce? for whom to produce? On the basis of inter-industry and inter-regional competition, there is an endless overflow of capital and resources, which ultimately forms an economic structure that meets the requirements of the market, the requirements of consumers.

4. Pricing function. It is known that each commodity producer has its own individual costs and, consequently, individual costs and prices. Meanwhile, the market recognizes only socially necessary costs and, accordingly, social, market prices, which simultaneously reflect both the needs of the buyer and the level of supply of the mass of commodities.

5. The function of economy of consumption, reduction of distribution costs in the sphere of consumption (expenses of buyers for the purchase of goods) and proportionality of demand of the population with wages.

6. stimulating function. The orientation of market prices to the social level of costs, to taking into account the demand of consumers, encourages each commodity producer to save his individual costs and present to the market those goods that the buyer needs. In turn, the market encourages the buyer to take care of the economy of consumption, to save costs on the purchase of goods, encourages to measure the level of demand with the level of income.

7. equivalent function. The market compares the individual labor costs of an individual producer with the social "standard", commensurate costs and results, and also reveals the value of the product.

8. Creative-destructive function. The market provides a dynamic change in all economic proportions between industries and regions. It seems to blow up the old structure of the economy and at each new stage of development forms a new structure. Of course, this process is difficult, painful, painful, but it is a reality. A vivid and illustrative example of this is the restructuring of the economy in modern Russia.

9. Sanitizing, health-improving function. In this sense, the market is reminiscent of an orderly who removes everything obsolete and diseased from the economy, cleanses social production of obsolete industries, economically unviable economic entities and gives way to economical industries, highly efficient farms. It is quite obvious that this process is also painful and painful, for it hastens the destruction of weak farms.

10. differentiating function. The market stratifies and differentiates commodity producers, that is, it enriches some and ruins others. It is well known that the average life cycle of a small business does not exceed six years, that, as a rule, two of every three start-up entrepreneurs go bankrupt in a relatively short period.

The question of the functions of the market allows us to closely consider another aspect of the topic - the advantages and disadvantages of the market mechanism.

Above, when analyzing the functions, it was found that the market mechanism of management has a number of obvious advantages, advantages and has a positive impact on the economic life of society. The following manifestations of the positive and negative influence of the market can be noted:

- stimulates the growth of production, accelerates the pace of its development;

- increases production efficiency, encourages saving labor and resources;

Forms the structure of the economy that meets the needs and demands of the consumer;

To a certain extent, the market creates a self-regulating economic system, where everyone occupies his own niche;

Centuries of experience in the use of the market testifies to its natural nature, which meets the needs of society;

- the market enriches a certain part of the population. However, the market should not be idealized, since it has inherent shortcomings. You can specify the inherited manifestations of the negative influence of the market mechanism on the economic and social life of society:

As a self-regulating system, the market is not an ideal system. Partial and, in particular, general macroeconomic equilibrium in a given system is realized through a constant violation of this equilibrium. In other words, the market system is not stable enough. A typical form of its instability is the cyclical nature of the development of the economy;

One form of imbalance and at the same time a form of economic instability is inflation, rising prices. The consequences of this form of macroeconomic instability are economically destructive and socially dangerous;

The market system does not ensure the full use of resources. It is characterized by underemployment of material and labor resources. Unemployment is an inevitable companion of the market, its consequences are socially dramatic;

The market itself generates factors that violate the freedom of the entrepreneur; Such factors are various forms of monopolism that deform the rules of the game in a free, classical market;

The market does not take into account the so-called negative externalities (for example, environmental pollution). Commodity producers, violating the ecological environment, do not want to bear the costs of restoring the forces of nature, restoring the ecological balance

The market does not fully take into account the impact of positive externalities (services of education, science, healthcare, etc.). He takes into account only the individual commercial aspect of these effects, but does not attach importance to the social impact of these factors, he seems to underestimate the full usefulness of these goods and services;

The market is indifferent to the production of so-called public goods and services (national defense, public order, child-rearing, etc.);

The market not only enriches, but also inevitably ruins some enterprises and some households;

The market is not capable of solving a number of social problems: maintenance of pensioners, the sick, the disabled, orphans, etc.;

Moral ideals of kindness, justice, patriotism, etc. are alien to the market. Different peoples have put together a lot of proverbs and sayings about this: “the market does not care about a person without a wallet”; “the market is a specially designated place where people can deceive each other”, “although an honest person can succeed in business, scrupulousness will be a hindrance to him, and then he will have to make up for his lack of moral flexibility with skill.”

All of the above allows us to conclude that the market mechanism needs to be regulated and adjusted. Such a mechanism has a mixed economy.

1.3 Structure and types of the market.

The characteristics of the market as a set of acts of sale and purchase can be revealed through its structure, system and infrastructure. The establishment and establishment of an efficiently functioning system of market infrastructure is an essential component of the process of transition of the Russian economy to market economic conditions.

Market structure - this is the internal structure, location, order of individual elements of the market, their share in the total volume of the market.

The features of any structure are:

a) close relationship between its elements

b) a certain stability of these bonds

c) integrity, the totality of these elements

The totality of all markets, divided into separate elements on the basis of a variety of criteria, forms a system of markets.

The following criteria can be distinguished to characterize the structure of the market:

1. According to the economic purpose of market objects:

commodity market

Consumer market

Market for means of production

Smart product market

Information Market

Financial market

Investment market

Credit Market

Stocks and bods market

Currency and money market

Labor market

2. By geographic location:

Local

Regional

National

World

3. Degree of restriction of competition

Free

Monopolistic

Oligopolistic

4. By industry

Automotive

Oil

Metallurgical

5. By nature of sales:

Wholesale

The history of market development allows us to distinguish the following types of market: undeveloped, free, regulated.

Undeveloped market It is characterized by the fact that market relations are random, most often commodity (barter) in nature. But even here the market plays a certain role, it contributes to the differentiation of members of society, strengthening the motivation to develop the production of certain goods.

free market characterized by the following features:

1) an unlimited number of participants in market relations and free competition between them;

2) absolutely free access to any economic activity of all members of society;

3) absolute mobility of factors of production; unlimited freedom of movement of capital;

4) each participant has absolutely complete information about the market (about the rate of return, demand, supply, etc.). The implementation of the principle of rational behavior of market entities (optimization of individual well-being as a result of income growth: sell more expensive, buy cheaper) is impossible without information;

5) absolute homogeneity of goods with the same name (absence of trademarks, etc.);

6) not one area of ​​free competition is able to directly influence the decision of another by non-economic methods;

7) prices are set spontaneously in the course of free competition;

8) lack of monopoly (one producer), monopoly (one buyer) and state regulation.

The free market is an abstraction. At present, and in the past (to varying degrees) there has been and is a regulation of the market, because no statehood meets the conditions of a free market. There cannot be complete economic freedom, but there must be sufficient economic freedom, which contributes to the rapid development of the economy and which is ensured by the development of a normal, civilized, regulated market. There cannot be complete economic freedom, but there must be sufficient economic freedom, which contributes to the rapid development of the economy and which is ensured by the development of a normal, civilized, regulated market.

Regulated market- this is the result of civilization and humanization of society, when the state seeks to somehow soften the impact of the market on the interests of individual members of society, but not so much as to nullify the motivation for creative, initiative work and risk in economic activity. The market must be regulated in order to remove or somehow limit its negative consequences.

2. Market structures.

The conditions in which market competition takes place, as well as a number of other processes, are usually called the market structure. It involves taking into account the number and capabilities of sellers (buyers) in the price and volume of sales (purchases).

In fact, the concept of "market structure" is broader than the category of "market". It actually covers many aspects of the market organization of the entire national economy, and it cannot be reduced to the market in its ordinary interpretation.

Despite the variety of market structures, the following four types (market models) are usually distinguished: perfect competition, monopolistic competition, oligopoly, monopoly. Each of these structures differs in the degree of market competitiveness, that is, the ability of firms to influence the market, and, above all, prices. The smaller this influence, the more competitive the market is considered.

Table 1.

The presented characteristics of the types of market structures, when compared with reality, show that such market models as perfect competition and monopoly (pure monopoly) are actually extremely rare, while monopolistic competition and oligopoly describe many really existing markets. Let's take a closer look at each of the market models.

2.1 Perfect competition, its essence and meaning.

Perfect competition exists in such areas of activity where there are many small sellers and buyers of an identical (identical) product, and therefore none of them is able to influence the price of the product. Here the price is determined by the free play of supply and demand in accordance with the market laws of their functioning. This type of market is called a "free market".

The existence of a huge number of buyers and sellers means that none of them has more information about the market than the rest. The seller, having come to the market, finds the already established price level, which is beyond his power to change, because the market itself dictates the price at every moment of time. This situation allows new sellers on equal terms (price, technology, legal conditions) with existing sellers to start manufacturing products. On the other hand, sellers are free to leave the market, which implies the possibility of an unhindered exit from the market. The freedom of "market" movement creates the conditions for the market to always change the number of producers. At the same time, the remaining sellers still lack the ability to control the market, since they represent small-scale production and are extremely numerous.

The main characteristics of a perfectly competitive market are:

A large number of small sellers and buyers,

The sold product is homogeneous for all manufacturers, and the buyer can choose any seller of goods to make a purchase,

The impossibility of control over the price and volume of purchase and sale creates conditions for the constant fluctuation of these values ​​under the influence of changes in market conditions, - - complete freedom of "entry" to the market and "leaving".

Each firm has a very large share of total output sold on the market, less than 1% of total sales in any given time period.

In real economic reality, the market of perfect competition in the strict theoretical sense, as described above, is practically never found. It represents the so-called "ideal" structure, implying that free competition exists rather as an abstract idea, to which real markets can only more or less aspire. But still, in economic practice, there are markets for some goods that are most suitable for the criteria of a given market structure (for example, the securities market or the market for agricultural products). Here the number of sellers and buyers is so great that, with rare exceptions, no single person or group is able to control the market for certain types of securities or agricultural products. Moreover, the goods in these markets are completely identical for all manufacturers, and the latter have full information about changes in the market. All this confirms the need to use a special - "exchange" - form of organization for such a market (a commodity exchange of agricultural products or a stock exchange).

The vast majority of real markets are markets of imperfect competition. They got their name due to the fact that competition, and hence the spontaneous mechanisms of self-regulation (the "invisible hand" of the market) act on them imperfectly. In particular, the principle of the absence of surpluses and deficits in the economy, which just testifies to the efficiency and perfection of the market system, is often violated. Since some goods are in excess and some are not enough, it is no longer possible to assert that all the available resources of the economy are spent only on the production of the necessary goods in the required quantities.

The prerequisites for imperfect competition are:

1. significant market share of individual manufacturers;

2. presence of barriers to entry into the industry;

3. heterogeneity of products;

4. imperfection (inadequacy) of market information.

Each of these factors individually and all of them together contribute to the deviation of the market equilibrium from the point of equality of supply and demand. So, the only manufacturer of a certain product (monopolist) or a group of large firms conspiring among themselves (cartel) are able to maintain inflated prices without the risk of losing customers - they simply have nowhere else to get this product.

As in the case of perfect competition, in imperfect markets, one can single out the main criterion that allows one or another market to be classified in this category. The criterion for imperfect competition is a decrease in the demand curve and prices with an increase in the firm's output. Another formulation is often used: the criterion for imperfect competition is the negative slope of the demand curve (D) for the firm's products.

Thus, if in conditions of perfect competition the volume of output of the firm does not affect the price level, then in conditions of imperfect competition such an effect exists. This can be seen clearly in Figure 1.

The economic meaning of this pattern is that a firm can sell large volumes of products with imperfect competition only by reducing prices. Or put another way: the behavior of a firm is significant across the industry.

The relationship between the volume of output and the price level is always observed, if it is really a market of imperfect competition.

Competition creates incentives for producers to constantly diversify their products and services in order to conquer the market. The expansion of the range of products offered for sale occurs both through the creation of completely new goods and services, and through the differentiation of an individual product.

2.2 Characteristic features of a monopoly. Monopoly in Russia.

Monopoly- the most striking manifestation of imperfect competition. Here there is only one seller, and he produces a product that has no close substitutes. In a monopoly, the producer is able to completely control the supply of goods, which allows him to choose any price possible in accordance with the demand curve, hoping to maximize profit. Therefore, the choice of price from the possible options is predetermined by the amount of profit received from the sale of a possible quantity of goods at a given price. Strictly speaking, in conditions of monopolization of the market, the very existence of competition can be recognized only with great reservations. After all, competition presupposes the division of economic power, the choice of the consumer. That is why the competition between manufacturers for the demand of the consumer begins, there is a desire to satisfy his needs in the best possible way. In conditions of monopoly, consumers are opposed by a single producer. Whether the consumer wants it or not, he is forced to use the monopolist's products, agree to its price terms, and so on. Strengthens the power of the monopolist over the market and the completeness of the information available to him. Serving all consumers in the industry, he knows exactly the size of the market, can quickly and with absolute accuracy track changes in sales volumes and, of course, is aware of the prices in detail, which he sets himself.

The combination of all these circumstances creates an exceptionally favorable environment for the monopolist and favorable prerequisites for making super profits. Therefore, the monopolistic structure of the market, where it exists, is protected by a whole system of practically insurmountable barriers to the entry of independent competitors into the industry. The main barriers that exist in the monopolistic industry are:

scale effect. Highly efficient production with low costs is achieved in conditions of large-scale production, due to the monopolization of the market. Such a monopoly is often called "natural monopoly", i.e., an industry in which long-run average costs are minimal if only one firm serves the entire market. Natural monopolies include public utility enterprises and enterprises that exploit unique natural resources (for example, electric and gas enterprises, water companies, communication lines and transport companies).

Exclusive rights. In a number of countries in Europe, America and Russia, the government grants firms the status of a sole seller. But in exchange for these privileges, the government retains the right to regulate the operation of such monopolies in order to exclude abuse of monopoly power and protect the interests of non-monopolized industries and the population.

License- This is the right of the company to the exclusive implementation of a certain type of activity in this market.

Trademarks- these are special characters that allow you to recognize a product, service or company; competitors are prohibited from using registered trademarks, counterfeiting them or using similar ones that confuse the consumer.

Patent- a certificate certifying the exclusive rights of the author to dispose of the good (technology) created by him.

Monopoly in its purest form is an extremely rare occurrence. Like perfect competition, it is more of an economic abstraction. Even the complete absence of competitors within the country does not exclude their presence abroad. Therefore, one can imagine a pure, absolute monopoly rather theoretically. Quite often, the telephone system is cited as an example of a pure monopoly, and this is almost true. But we should not forget that other types of communications (for example, satellite communications) create hidden competition, offering high-quality substitutes for telephone communications.

A monopoly arising from the demand side, when there is only one buyer in the market with many sellers, is called monopsony. Such a market structure is in all respects similar to a monopoly, the features of which are transferred to the buyer. Pure monopsony is no less unique than monopoly.

There are various monopoly unions :

Cartel - is called an organization formed by independent firms in order to gain the benefits of a monopoly. Cartels coordinate the actions of their members by limiting production, raising prices and thus making a profit.
Syndicate - higher degree of monopolization. The enterprises included in it retain legal and industrial independence, unite their commercial activities, creating for this purpose joint offices for the sale of products.

Trust - this is a gigantic industrial, industrial-commercial, and sometimes industrial-scientific association, which set the development in general in this sphere of the economy in which it operated. It fully integrates not only the sale of goods, but also their production. The enterprises included in the trust are under a single management.

Conglomerate- this form of monopolistic unions is not widely used. They united (more often absorbed) a large number of firms of various industries and sectors of the economy - from metallurgical and textile enterprises to laundries and travel agencies. The concentration of solid capital made it possible to have additional profit by playing on stock prices. In addition, the conglomerates leveled the unfavorable and sometimes crisis situation in some industries at the expense of enterprises in other industries, and then made up for lost profits.

Concern - large inter-industry unions united hundreds of enterprises of different industries located in different countries. Diversification strengthens the production positions of concerns and significantly increases their degree of control over the market, allows you to redistribute and more efficiently use production capacity, scientific and technical potential, labor, advertising and promotion costs of their activities.

Financial and industrial group - formation of a set of economic entities with the rights of legal entities. They include a financial structure.

The peculiarity of Russian monopolies lies in their history. In the USSR, giant enterprises were built in each industry (one enterprise for the entire union). They were highly specialized and had no competitors. Then the competition was weakly expressed, everything was decided by the State Planning Committee. This greatly facilitated the administration of the state. With the transition to market relations, many enterprises have become monopolies, some local, and some national, such as RAO "Gazprom" and RAO "UES of Russia". In the Russian Federation, as well as throughout the world, the attitude towards monopolies is twofold. On the one hand, they, dominating the market, dictate their prices and tariffs for products, manage demand with the help of supply. On the other hand, with large-scale production, unit costs decrease with an increase in production volume.

On the territory of our country there are two laws:

- On competition and limitation of monopolistic activity in commodity markets.

The government has compiled a register (list) of monopoly enterprises. It includes enterprises that capture more than 30% of the market. In relation to such enterprises, the state applies, first of all, control over prices, requiring their justification (should be equal to costs plus normal profit).

- About natural monopolies.

Goods produced by natural monopolies cannot be replaced in consumption by other goods, and therefore demand in this market of goods depends less on price than on other types of goods.

A unique situation has developed in the Russian Federation, when several “natural” monopolies have developed in the country. Those. companies are not legally natural monopolies, because RAO "Gazprom" and RAO "UES of Russia" are engaged not only in the transportation permitted by the Law "On Natural Monopolies", but also, respectively, in the production of gas and the production of heat and electricity, which falls under the Law "On Competition and Restriction of Monopolistic Activities in Commodity Markets". In this case, transportation is the final stage of the production cycle. In such a situation, the state faces a difficult task - to restructure natural monopolies. Namely, to separate the company for transportation from manufacturing companies. This was done in the case of RAO UES of Russia.

The development of small and medium business plays an important role in overcoming monopolization. Therefore, the formation of the market and competition requires the implementation of a set of measures, including the intensification of the "antitrust" activities of the state. However, the market itself and competition give rise to a tendency towards monopolization. And here the most important task of the state is to counteract this trend.

2.3 Features of monopolistic competition

Starting to consider monopolistic competition, after I have already presented market structures with perfect competition and monopoly, we must begin with the fact that it is a kind of "golden mean" between them. It can be said that monopolistic competition is neither perfectly competitive nor perfectly monopoly. Monopolistic competition is characterized by a significant number of producers, which exceeds at least 25 entities. Although there are no clear boundaries here. As in perfect competition, it is assumed that there are many firms in the industry and there is fairly free entry and exit. However (and this is a feature of monopoly) all firms in the industry have some ability to modify the price of the product they produce, since each firm will sell a product that is significantly different from the products of its competitors.

Monopolistic competition- this is a relatively large number of manufacturers offering similar, but not identical (from the point of view of buyers) products. We note the main features that characterize monopolistic competition:

There are a relatively large number of small firms in the market;

These firms produce a variety of products, and although the product of each firm is somewhat specific, the consumer can easily find substitute products and switch his demand to them;

Entry of new firms into the industry is not difficult

To open a new vegetable shop, atelier, repair shop, significant initial capital is not required. The economies of scale also do not require the development of large-scale production. Demand for the products of firms operating under monopolistic competition is not perfectly elastic, but its elasticity is high.

In the market of monopolistic competition, products can also be differentiated by the conditions of after-sales service (for durable goods), by proximity to customers, and by the intensity of advertising. Thus, firms in this market enter into a kind of rivalry not so much through prices, but through all kinds of product differentiation. The widespread competition of firms in terms of product differentiation does not eliminate the firm's monopolistic power over its type of product, which allows the enterprise to raise (or lower) the price of it regardless of competitors, although this power is limited by the presence of manufacturers of similar products and considerable freedom of entry into the industry.

The market of monopolistic competition is not characterized by high concentration. Typically, the concentration indicator is used to classify a market as one of the types. By Western standards, the number of competing manufacturers should be at least 10-15, and the share of the largest of them should not exceed 31% of the total sales of the corresponding products, two - more than 44%, three - 54% and four - 64%. In markets of monopolistic competition, economic gains and losses cannot last long. In the long run, losing firms will choose to leave the industry, and high economic profits will encourage new firms to enter. New firms producing similar products will gain market share, and the demand for the goods of the firm making economic profit will decline.

A decrease in demand will reduce the firm's economic profit to zero. In other words, the long-term goal of firms operating under monopolistic competition is to break even. The situation of long-term equilibrium is shown in Figure 2.

Figure 2. Long-term equilibrium of a firm under conditions of monopolistic competition: D - demand; MR - marginal income; MS - marginal costs; ATS - average gross costs

The market model of monopolistic competition describes a set of really existing markets. Its characteristics correspond quite accurately to most service industries (examples include a chain of restaurants, service stations, banking services, in manufacturing industries - this is the production of clothing, soft drinks, computers).

2.4 Oligopoly as a modern market structure.

Along with monopolistic competition, an important place among market structures in the modern economy is occupied by an oligopoly or a structure characterized by the presence of several firms on the market, some of which control a significant market share. In other words, to oligopolistic structures can be attributed to such markets, which are concentrated from 2 to 24 sellers. If two the seller is duopoly or a special case of an oligopoly, because it is no longer a monopoly, then the upper limit is conditionally limited to 24 economic entities, since the countdown of structures of monopolistic competition conditionally begins from the number 25.

An oligopoly is characterized by restrictions on the entry of new firms into the industry; they are associated with economies of scale, high advertising costs, existing patents and licenses. High barriers to entry are also a consequence of the actions taken by leading firms in the industry in order to keep new competitors out of the industry.

A feature of an oligopoly is the interdependence of firms' decisions on prices and output. No such decision can be made by a firm without taking into account and evaluating possible responses from competitors. The actions of competing firms are an additional constraint that firms must take into account when determining the optimal price and volume of production. Not only costs and demand, but also the response of competitors determine decision making. Therefore, the oligopoly model should reflect all three of these points. Relations between firms are characterized as interdependence. Firms that know that their actions will affect competitors in the industry make decisions only after they understand the nature of the reaction of rivals.

Oligopolistic firms mainly use methods of non-price competition. There is evidence that in many oligopolistic industries prices have remained stable over long periods of time. Unlike other market structures, there is no universal theory of oligopoly. Instead, the theory of oligopoly consists of a fairly significant number of different models, each of which describes a special case that occurs only under certain conditions. Oligopoly is one of the most common market structures in the modern economy. In most countries, almost all branches of heavy industry (metallurgy, chemistry, automotive, electronics, ship and aircraft building, etc.) have just such a structure. Formally, oligopolistic industries usually include those industries where several largest firms (in different countries, from 3 to 8 firms are taken as a reference point) produce more than half of all output. If the concentration of production is lower, then the industry is considered operating in conditions of monopolistic competition.

The main reason for the formation of an oligopoly is economies of scale. An industry acquires an oligopolistic structure if the large size of the firm provides significant cost savings and, therefore, if large firms in it have significant advantages over small ones.

It is customary to say that oligopolistic industries are dominated by the Big Two, Big Three, Big Four, etc. More than half of sales come from 2 to 10 firms. For example, in the United States, four companies account for 92% of the production of all cars. Oligopoly is characteristic of many industries in Russia. The shipbuilding industry employs about 1 million workers at 40 enterprises, of which 17 are large, but seven dominate the market: Admiralty Shipyards, Almaz, Baltiysky Zavod (all three in St. Petersburg), machine-building the Zvezdochka plant in Severodvinsk, Krasnoye Sormovo in Nizhny Novgorod, the Amur shipbuilding and ship repair plant in Khabarovsk, the Zvezda Far East plant in Primorsky Krai. The small number of firms means that each of them has a large market weight and can influence the price. Under such conditions, firms become dependent and competition between them is fraught with serious troubles. If one of the firms increases the supply of goods on the market, then the price will decrease accordingly, which will affect the income of other oligopolistic firms. By driving down prices in the market, firms can wage real price wars, but more often competition is regulated by mutual agreements.

But it is not always possible to judge the structure of the market on the basis of indicators relating to the entire national economy. So, often certain firms that own an insignificant share of the national market are oligopolistic in the local market (for example, shops, restaurants, entertainment enterprises). If the consumer lives in a big city, he is unlikely to go to the other end of the city to buy bread or milk. Two bakeries located in the area of ​​his residence may be oligopolists.

An important condition affecting the nature of individual markets is the height of the barriers that protect the industry (the amount of initial capital, the control of existing firms over new technology and the latest products with the help of patents and technical secrets, etc.).

The fact is that there can never be many large firms in an industry. Already the multibillion-dollar value of their plants serves as a reliable barrier to the entry of new companies into the industry. In the usual course of events, a firm becomes larger gradually, and by the time an oligopoly is formed in the industry, a narrow circle of largest firms has actually been determined. In order to invade it, one must immediately have such an amount that the oligopolists have gradually invested in the business over decades. But even if funds were found for the construction of a large number of giants, they would not be able to work profitably in the future. After all, the market capacity is limited. Consumer demand is enough to absorb the products of thousands of small bakeries or auto repair shops. However, no one needs metal in quantities that could smelt thousands of giant domains.

There are significant limitations in the availability of economic information in this market structure. Each market participant carefully guards trade secrets from its competitors.

A large share in output, in turn, provides oligopolistic firms with a significant degree of control over the market. Already each of the firms individually is large enough to influence the position in the industry. So, if the oligopolist decides to reduce output, this will lead to an increase in prices in the market. And if several oligopolists begin to pursue a common policy, then their joint market power will come close to that possessed by a monopoly.

A characteristic feature of the oligopolistic structure is that firms, when forming their pricing policy, must take into account the reaction of competitors, that is, all producers operating in the oligopolistic market are interdependent. With a monopolistic structure, such a situation does not arise (there are no competitors), with perfect and monopolistic competition - also (on the contrary, there are too many competitors, and it is impossible to take into account their actions). Meanwhile, the reaction of competing firms can be different, and it is difficult to predict it. Oligopolistic interdependence - the need to take into account the reaction of competing firms to the actions of a large firm in an oligopolistic market.

Any model of an oligopoly must proceed from taking into account the actions of competitors. This is an additional significant limitation, which must be taken into account when choosing a behavior pattern for an oligopolistic firm. Therefore, there is no standard model for determining the optimal volume of production and the price of products for an oligopoly. It can be said that determining the pricing policy of an oligopolist is not only a science, but also an art. Here, the subjective qualities of a manager, such as intuition, the ability to make non-standard decisions, take risks, courage, determination, etc., play an important role.

Conclusion

Throughout the evolution of economic thought regarding models of competition, each time more and more factors causing it were taken into account. However, none of the considered models of competition allows us to answer all questions related to the behavior of firms in such markets.

The degree of market imperfection depends on the type of imperfect competition. In conditions of monopolistic competition, it is small and is associated only with the ability of the manufacturer to produce special varieties of goods that differ from competitive ones. Under an oligopoly, market imperfection is significant and is dictated by the small number of firms operating on it. Finally, monopoly means that only one manufacturer dominates the market.

Conditions close to perfect competition exist in many sectors of the economy where new private business predominates. A completely different picture is observed in industries dominated by privatized enterprises. These sectors of the economy are usually highly monopolized. In a monopolized industry, only large enterprises are efficient. Monopoly chances exist only where size creates large cost advantages.

The high level of monopolization and its sharply negative impact on the economy makes it necessary to conduct an antimonopoly policy in our country. Moreover, Russia needs to be demonopolized; a radical reduction in the number of sectors of the economy where a monopoly has been established.

The main problem and at the same time difficulty is the specificity of the monopoly inherited from the socialist era. Natural monopolies also pose a particular problem. A decisive role in creating a favorable competitive environment in the market is played by antimonopoly legislation and the activities of antimonopoly authorities, the correct behavior of which contributes to the stabilization of the entire economy as a whole.

Most market situations in the real world fall somewhere between the extremes of perfect competition and complete monopoly. It is useful from time to time to distinguish between the characteristics of a purely competitive market and those of other major market models.

With the help of state regulation of the economy and various antimonopoly measures of an official and unofficial nature, it is possible to achieve what factors that automatically act in conditions of free competition, counteracting the influence of monopolies or balancing it, cannot provide.

List of used literature

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