Character: Prokopenko Z. V.
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.
№ 464193 Added
MegaMozg 15-03-2024 / 23:00
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.
№ 464192 Added
MegaMozg 15-03-2024 / 22:57
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.
№ 464191 Added
MegaMozg 15-03-2024 / 22:54
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№ 464190 Added
MegaMozg 15-03-2024 / 22:51
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.
№ 464189 Added
MegaMozg 15-03-2024 / 22:48
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.
№ 464188 Added
MegaMozg 15-03-2024 / 22:45
Market competition promotes the redistribution of public resources in favor of the most efficiently operating economic entities.
№ 464187 Added
MegaMozg 15-03-2024 / 22:42
The only condition for making a profit for a manufacturer operating in a competitive environment is to reduce the cost of producing each unit of goods.
№ 464186 Added
MegaMozg 15-03-2024 / 22:39
Market competition is the struggle between sellers (for more favorable conditions of production, allowing them to maximize profits) and between buyers (for more favorable conditions of consumption, allowing them to maximize utility). As a result of competitive selection, those producers who manage to organize production effectively survive in the market.
№ 464185 Added
MegaMozg 15-03-2024 / 22:36
