Competition and Monopoly - related to each other economic concepts.Often they even call antonyms, as the signs are opposite one another featured.Each manufacturer would like to be a monopoly in its market, but only a few succeed.All economies are different, but have much in common.
consider such notions as competition and monopoly in detail.Perfect competition - this is the perfect model of the market.It is absolutely no monopoly.In the market there are many similar products on the properties of the different manufacturers.Buyers in the selection of products oriented to the cost.Demand is almost entirely dependent on the price level.Competition in the market is very high, with many participants can cost-effectively and barriers to enter it.The process yield is also quite simple.All manufacturers are as a perfect market does not exist and brands.In the modern world it is impossible to find this kind of competition.
Monopoly - the antithesis of the above model.It is inherent in the presence of only one vendor that offers customers the unique properties of the goods.The company itself controls the prices of products in the scope of supply.The competition is completely absent in a monopoly.The leader initially dictates unacceptable conditions for entering the market.In this form of the economy may experience deficit.Competition and Monopoly interrelated as follows: the greater the percentage of firms in the market, the smaller its monopolization.
In today's economy should not be seen as enemies of society monopolists.They are essential in a number of industries.For example, communications, water, gas and other.These companies are generally owned by the state, it is intended to monitor the activities of monopolists.These market players are required, as this saves resources.Big companies have large capacity, high productivity and low costs.
on the market to create artificial monopolies.They arise when the company tries to protect its know-how.Moreover it imposes restrictions as patents or licenses.Other companies do not have the right to use the invention and to award him his authorship.But it is necessary to take into account that the natural operation of the market need and competition and monopoly.It is their combination and observed in the modern economy.
Monopolistic competition - the situation on the market, where there are many manufacturers offering similar, but not identical goods.With this situation, it takes a few companies producing differentiated products.The difference in this regard to the quality, price, after-sales service, advertising intensity, proximity to customers and so forth. From a monopoly in this model there is the following feature - each firm has a relative power to set the price on your product.At the same time, there are small, medium and large enterprise players.
oligopoly - on the market of a small number of participants.Usually, their number is limited to a dozen firms.Manufacturers dominate on any particular market for goods (services).Products in this can be both homogeneous and differentiated.The former include semi-finished products (oil, ore, cement, steel and so on.), Raw materials.Are differentiated consumer markets.Firms agree among themselves on the level of prices.They try to the maximum to reduce competition, as very few manufacturers.As a result, extremely close to an oligopoly of monopoly.
So, we have considered the importance of competition and monopoly in the market economy, what economic system they form.
