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To produce goods and services, enterprises can use their own resources and borrowed ones purchased on the capital market. The capital market is the sphere of borrowed money movement for the acquisition of capital goods.

In the factor of production market, modern economic theory understands capital as physical capital, which appears in the form of enterprise inventories, equipment and other production resources. owned by firms and other organizations. In other words, capital includes all human-created resources used to produce goods.

The principle of the state strategy in the field of income in a market economy can be formulated as follows: All

The desire to maximize income dictates the economic logic of behavior for any market subject. Income is the ultimate goal of the actions of every active participant in a market economy, an objective and powerful incentive for his daily activities.

Changes in the demographic structure of the population, in particular the growth of the working age population, increases the supply of labor and, therefore, increases the likelihood of unemployment.

An individual receives wages for his work, which he spends on purchasing goods and services that benefit him. Leisure also benefits him: he reads, watches TV, plays sports, communicates with friends, etc. The basic principle of an individual's economic behavior is maximizing the utility obtained from work and leisure. Of course, each individual has his own subjective scale of values.

Special mention should be made of natural monopolies, the only socially acceptable form of monopolistic organization of production. A natural monopoly is a monopoly that produces socially necessary products in an objectively non-competitive sector of the economy. A characteristic feature of a natural monopoly is an increase in returns to scale of production. This means that the larger the production volume, the lower the cost per unit. Therefore, one company is able to fully satisfy market demand for a given type of product at a price lower than the competitive price.

The economic meaning of a monopoly is to obtain economic excess profits. By realizing its economic interest, a monopoly causes damage to both market agents: both the consumer and the producer, who, as a result of market monopolization, suffer economic losses.

The potential ability of firms to set prices for their products determines the degree of market monopolization. The monopoly price is always high, because it includes the amount of monopoly rent added by the monopolist to the market price of the product due to its dominant position in the market. The degree to which the monopoly price exceeds actual costs characterizes the market power of a given manufacturer.

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A market structure is characterized by perfect (pure) competition if none of the sellers (buyers) is able to significantly influence the market price. If this condition is not met, then competition in the market is limited.

The higher the degree of market competitiveness, the more economically optimal the price level is, acceptable both for the normal (break-even) functioning of the business sector and for the normal level of meeting the needs of the consumer sector.

Market competition promotes the redistribution of public resources in favor of the most efficiently operating economic entities.