Model of perfect competition and its characteristics. Types of market structures: perfect competition, monopolistic competition, oligopoly and monopoly Model of perfect competition as a market of complete decentralization
Answer from Lana lana[guru]
Monopoly in economics.
Plan.
1. Introduction.
2. The concept of natural monopoly.
3. State and natural monopolies.
4.Methods of regulation of natural monopolies.
Introduction.
Before proceeding directly to the analysis of natural monopoly, it is necessary to imagine a market model not perfect competition, within which a monopoly exists, one of the types of which is a natural monopoly. In principle, the best way to characterize a market model is imperfect competition is to compare the latter with the perfect competition market model and identify the differences between them. Therefore, in my opinion, it is necessary first to say a few words about the perfectly competitive market, which, in principle, is an ideal model, since it does not exist in reality. So, the market model of perfect competition is characterized by the following features:
1. the presence on the market of many independent sellers and buyers, each of whom produces or buys only a small share of the total market volume of a given product;
2. homogeneity of the product and the same perception of sellers by buyers;
3. the absence of barriers to entry for new producers into the industry and the possibility of free exit from the industry;
4.full awareness of all market participants;
5.rational behavior of all market participants.
Now, based on the differences in the above points, we will try to outline a model of an imperfectly competitive market.
Speaking about the market of imperfect competition, we can go deeper into the analysis, for example, of oligopoly or monopolistic competition, which are the real subjects of the market of imperfect competition, however, touching upon, let alone analyzing, these subjects is not our task, so we will limit ourselves to considering the features pure monopoly. So what is a monopoly? In principle, a monopoly can be characterized as a market structure in which one firm supplies the market with a product that has no close substitutes. From this characteristic it follows that the monopoly product is unique in the sense that there are no good or close substitutes for this product. From the buyer's point of view, this means that there are no acceptable alternatives, resulting in the buyer having to purchase the product from the monopolist or do without. In contrast to a perfectly competitive market entity, which "agrees with the price", the monopolist dictates the price, that is, it exercises significant control over the price. And the reason is obvious: it issues and therefore controls the total supply. With a downward-sloping demand curve for its product, a monopolist can cause a change in the price of the product by manipulating the quantity supplied of the product.
One of the most important distinctive features A monopoly is the presence of barriers to entry into an industry, that is, limiters that prevent the emergence of additional sellers in the market of a monopoly firm. Barriers to entry are necessary to maintain monopoly power. If free entry into monopolized markets were possible, the economic profits generated by monopoly firms would attract new producers and sellers. Monopoly control over price would finally disappear as markets would become competitive. Among the main types of barriers to entry into markets that enable the emergence of a monopoly and help maintain it are the following:
1.Exclusive rights obtained from the government. For example, local authorities authorities often allow the installation of systems cable television the only company. Government authorities usually grant a monopoly on the right to provide transport services, communication services, also basic public utilities such as public hygiene, electricity, water supply and sewerage, gas supply. In France, since 1904, the funeral business has been controlled by General Funerals, a monopoly
Perfect competition- competition between manufacturers and sellers of goods, which takes place in the so-called ideal market, where there is an unlimited number of sellers and buyers of a homogeneous product, freely communicating with each other.
A perfectly competitive market is characterized by the following features.
1 . The firms' products are homogeneous, so consumers don't care which manufacturer they buy it from. All goods in the industry are perfect substitutes, and the cross price elasticity of demand for any pair of firms tends to infinity.
This means that any, no matter how small, increase in price by one manufacturer above the market level leads to a reduction in demand for its products to zero.
Thus, non-price competition on this there is no market, and the difference in prices may be the only reason for preferring one or another company.
2. Number of economic entities On the market unlimitedly large and their specific gravity relative to the industry is extremely small. Decisions of an individual firm (individual consumer) to change the volume of its sales (purchases) do not affect the market price product.
The perfect competition model assumes that there is no collusion between sellers or buyers to gain monopoly power in the market. The market price is the result of the joint actions of all buyers and sellers.
3. Freedom of entry and exit On the market. There are no restrictions or barriers - no patents or licenses are required to limit activities in this industry, no significant initial investment, positive effect the scale of production is extremely small and does not prevent new firms from entering the industry; there is no government intervention in the mechanism of supply and demand (subsidies, tax breaks, quotas, social programs, etc.).
Freedom of entry and exit presupposes absolute mobility of all resources, freedom of their movement geographically and from one type of activity to another.
4. Perfect knowledge all market entities. All decisions are made with certainty. This means that all firms know their revenue and cost functions, the prices of all resources and all possible technologies, and all consumers have complete information about the prices of all firms. It is assumed that information is distributed instantly and free of charge.
These characteristics are so strict that there are practically no real markets that fully comply with them. However, the perfect competition model is extremely important element economic analysis. And that's why.
Firstly, the model allows explore markets that are close to competitive conditions, i.e. markets for relatively homogeneous products in which firms face highly elastic demand and can enter and exit the industry fairly freely.
Secondly, using the example of a competitive market, the main question facing any company is resolved: what volume of products should be produced to maximize its profit, i.e. what are conditions of economic equilibrium of the company.
And finally Thirdly, the model of perfect competition allows us to evaluate the efficiency of real industries and degree their monopolization.
Under conditions of perfect competition, a firm offers only a small portion of the industry's output to the market.
Let's assume that a small farming decides how much area to allocate for sowing potatoes next year. Obviously, the farmer will proceed from the prices that prevailed on the market this year. And his decisions to increase or decrease his production will have no impact on the market price of the product, determined by the interaction of the total market demand And market supply the product in question.
A perfect competitor is in the market price taker and his individual demand curve is perfectly price elastic (Fig. 1). As can be seen in the graph, the market demand curve (D) decreases (Fig. 1. A), because the more potatoes there are on the market, the lower prices consumers are willing to buy them. Demand curve (d), that an individual firm deals with is a horizontal line because a competitive firm can sell additional quantities of the crop without reducing the price.
Nesterov A.K. Model of perfect competition and conditions for its emergence // Nesterov Encyclopedia
Let us consider the conditions for the emergence and formation of the perfect competition market model.
Perfect competition, by its definition, presupposes the initial existence of a product homogeneous in properties and characteristics, its consumers and producers, the number of which tends to an infinitely large number, while an individual consumer and producer has a small market share, insignificant influence and cannot determine essential conditions sale or consumption of goods by other market participants.
In the model of perfect competition, an important aspect is also the availability of objective, necessary and publicly available information about goods, prices, price dynamics, as well as information about sellers and buyers, not only in a specific place, but also in the whole market and its immediate environment.
In the model of perfect competition there is an absence of any power of producers of goods over the market, prices for these goods and buyers, however, the price is set not by the manufacturer, but through the mechanism of supply and demand. It should be noted that the model of perfect competition can only exist ideally, since its characteristic features are not found in real life. economic systems ah in its purest form. Despite the fact that the real embodiment of perfectly competitive markets in modern economic systems does not exist in full compliance with the model of perfect competition, some markets are very close in their parameters to perfect competition. The markets closest to the conditions of perfect competition are markets for agricultural products, the market for foreign currencies and stock Exchange.
In general, it corresponds to a set of elements that consists of many consumers of a product and many producers of a product, while the state acts as a subject that does not directly influence market mechanisms. Consequently, the market size is determined by the sum of the number of consumers and the number of producers, provided that these sets do not intersect.
We can draw an objective conclusion that, according to the definition of perfect competition, the operating conditions of the market imply that the number of consumers tends to infinity, as well as the number of producers. Consequently, the size of the market, determined by the sum of the number of consumers and the number of producers, also tends to infinity. However, in real conditions this is not possible due to market limitations. Thus, perfect competition on this basis is possible only under ideal conditions.
The definition of perfect competition indicates that the entire set of producers on the market produces homogeneous products, and all products in the product range have the same quantitative characteristics. Wherein perfect competition model objectively indicates the fact that at least one product must be presented on the market. At the same time, the model of perfect competition assumes that for a set of sets of consumers and producers, a set of standardized consumed and produced goods with certain price characteristics is given. However, the equivalence of goods in practice is not really possible, since completely identical goods do not exist, and many characteristics of goods cannot be expressed by quantitative characteristics in the form of numerical data, especially given the existence of non-price indicators. Thus, this feature is also an ideal condition for the existence of perfect competition.
According to the definition of perfect competition, an individual consumer and producer cannot influence the conditions for the sale or consumption of goods that are significant for other participants in this market. In this regard, the model of perfect competition takes into account that in conditions where there is equal awareness of all market participants, each of them will strive to maximize their own benefit from the sale or consumption of goods. Taking this into account, the market, determined by the sum of the number of consumers and the number of producers, the number of which tends to infinity, in the short term has no upper limit benefits under conditions of perfect competition. Therefore, in the short run, the manufacturer will strive to maximize its profits by changing the volume of goods produced, while operating with the variable factors available to it, such as labor and materials. At the same time, in conditions of perfect competition, marginal revenue is equal to the price of a unit of production, so the manufacturer will increase the volume of goods produced until marginal costs become equal to marginal revenue, i.e. price. In real conditions, the benefit from the sale or consumption of goods cannot tend to infinity; therefore, this feature also characterizes the model of perfect competition as a certain set of ideal conditions. Accordingly, a decrease in the rate of profit in the long term is natural, therefore such a model of competitive relations is doomed to failure and some external intervention in the market situation is required.
Conditions for the emergence of perfect competition
Analyzing the model of perfect competition, we can make an objective conclusion that the conditions for the emergence of perfect competition come down to 4 main factors.
Conditions for the emergence of perfect competition
First, all producers require free access to factors of production at equal prices. In this case, full coverage of all resources, both tangible and intangible, including technology and information, is required. This condition for the emergence of perfect competition means the absence of geographical, organizational, transport and economic barriers to entry and exit from the market in relation to any manufacturer of goods sold on this market. It also guarantees the absence of collusion between producers regarding pricing policies and volumes of production of goods and ensures the rational behavior of all participants in the perfect competition market.
Secondly, a positive effect of production scale is achieved only when producing such a quantity of goods that does not exceed the demand available on the market from consumers of these goods. This condition for the emergence of perfect competition predetermines the economic feasibility and rationality of functioning within a given market of many small producers, the number of which, according to the model of perfect competition, tends to infinity.
Thirdly, prices for goods should not depend on the volume of their production and the pricing policy of an individual manufacturer, as well as the actions of individual consumers of these goods. This condition de jure assumes that producers operating in the market accept the price as a fact established from the outside; de facto, it means that the mechanism of supply and demand operates only on the basis of market laws, due to which the price is determined by the market, which corresponds to the price market equilibrium. In addition, this means that initially the costs of all consumers for the production of homogeneous goods are practically the same due to the similarity of the production technology used, the prices of production factors and the lack of differences in transport costs.
Fourthly, there must be complete information transparency of data on the characteristics of goods and their prices for consumers, as well as information about production technology and prices for production factors for producers. This condition for the emergence of perfect competition involves the provision of symmetrically developing sets of buyers and consumers, the number of which should tend to infinity. This condition is also associated with the ability of any market participant at any time to enter into a transaction with any other market participant without additional costs compared to any other producer or consumer.
When these conditions are met, a market of perfect competition arises, in which buyers and producers perceive market prices as set from the outside and do not influence them, without having a direct or indirect opportunity to do so. The first and second conditions ensure the presence of competition, both among buyers and among producers. The third condition determines the very possibility of a single price for a homogeneous product within a given market. The fourth condition is necessary for optimal interaction between market participants when buying and selling similar goods.
You can also select 3 additional ones.
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Additional conditions for the emergence of perfect competition |
Characteristic |
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Consumer capital |
In particular, the condition must be met that the consumer’s capital, with which he purchases goods, consists of the sum of his initial savings and the results of participation in the distribution of income in the production sector. The latter can be expressed in the form of receiving wages as payment for hired labor or dividends on share capital. |
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No personal preferences |
In addition, the condition that producers and consumers do not have preferences of a personal, spatial and temporal nature must be met. This makes it possible to ensure the existence of a collection of large sets of producers and consumers, the number of which tends to infinity. |
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No possibility of intermediaries |
Also as additional condition The emergence of perfect competition is the initial absence of the possibility of exchange offices, dealers, distributors, investment funds and any other intermediaries between producers and consumers appearing on the market. This follows from the market model of perfect competition, which includes only a set of sets of producers and consumers. |
Theoretical nature of the perfect competition model
From the point of view of economic theory, the conditions of perfect competition are characterized as the most profitable for society in the medium term, since unprofitable markets in long term cease to exist and are replaced by new ones that bring benefits to participants in these markets, which indicates the successful development of society as a whole. However, not all so simple.
The conditions necessary for the emergence of a perfectly competitive market are largely idealized, as confirmed by the model of a perfectly competitive market.
On the one hand, in practice it is impossible to fulfill all these conditions in the required form, on the other hand, it seems futile to maintain such conditions in the long term. Largely for this reason, the model of perfect competition is abstract. The perfect competition market model, which assumes complete freedom of competition and the market mechanism, describes the situation of the functioning of an ideal market and is more theoretical than practical significance. At the same time, consideration of the conditions for the emergence of perfect competition is a very significant area of building mathematical models, since it allows us to abstract from unimportant aspects when studying the principles of economic interaction and behavior of producers and consumers.
Thus, the interaction of producers and consumers in conditions of perfect competition should be considered exclusively from the point of view of studying the theoretical basis of the functioning of the market mechanism.
The value of the perfect competition model lies in its ability to analyze:
- firstly, from the position of each market participant when determining the strategy of behavior when selling or consuming a product,
- secondly, from the standpoint of assessment a separate type goods on the market,
- thirdly, from the perspective of the general state of competition in the market as a whole.
In the first case, the state of a particular subject and its interactions with other market participants is considered without taking into account the goods produced or consumed by it. The second approach allows us to evaluate the overall characteristics of a product without taking into account which specific market participant produced or consumed it. The most thorough is the third case, which is based on the search for the optimal state of the market as a whole, which would suit both producers and consumers.
Literature
- Berezhnaya E.V., Berezhnaya V.I. Mathematical methods for modeling economic systems. – M.: Finance and Statistics, 2008.
- Volgina O.A., Golodnaya N.Yu., Odiyako N.N., Shuman G.I. Mathematical modeling of economic processes and systems. – M.: KnoRus, 2012.
- Panyukov A.V. Mathematical modeling of economic processes. – M.: Librocom, 2010.
5. Characteristics of a perfectly competitive market
Perfect (pure) competition is the rivalry of numerous producers, in which the influence of each participant economically. the process on the general market situation is so small that it can be neglected. In conditions of perfect competition, there are a very large number of firms producing a standardized product. The main features of perfect competition are:
1) A very large number of independently operating sellers, usually offering their products in a highly organized market. An example is the stock exchange and the foreign market. currencies;
2) Standardized products. Competing firms produce standardized or homogeneous products. At a given price, the consumer is indifferent from which seller to buy the product. In a competitive market, the products of firms B, C, D, and so on are considered by the consumer as exact analogues of the product of firm A. Due to the standardization of products, there is no basis for non-price competition, that is, competition based on differences in product quality, advertising or sales promotion;
3) “Agreeing with the price.” In a purely competitive market, individual firms exercise little control over the price of their products. This property follows from the previous two. Under pure competition, each firm produces such a small portion of total output that increasing or decreasing its output will have no appreciable effect on total supply, or hence the price of the product. To illustrate, let us assume that there are 10 thousand competing firms, each of which currently produces 100 units of product. The total supply volume is therefore 1 million units. Now suppose that one of these 10 thousand firms reduces its production to 50 units. Will this affect the price? No. And the reason is clear: a reduction in output by one firm has an almost imperceptible effect on the total supply - more precisely, the total quantity supplied decreases from 1 million to 999,950 units. This is obviously not a sufficient change in the quantity supplied to significantly affect the price of the product. A separate, competing manufacturer agrees to the price. He cannot set a new market price, but only adapts to it, that is, agrees with the price.
In other words, the individual competing producer is at the mercy of the market; the price of a product is a given value that the manufacturer has no influence on. A firm can earn the same unit price for either more or less production. Request more high price than the existing market price would be useless. Buyers will not buy anything from company A at a price of 30.5 rubles if its 9999 competitors sell an identical product, or, therefore, an exact substitute, for 30 rubles. a piece. On the contrary, due to the fact that firm A can sell as much as it considers necessary for 30 rubles. per piece, there is no reason for it to be prescribed any more low price, for example 29.5 rub. Indeed, if she did so, it would cause a decrease in her profits;
4) Free entry and exit from the industry. New firms are free to enter and existing firms are free to leave competitive industries. In particular, there are no serious obstacles - legislative, technological, financial and other - that could prevent the emergence of new firms and the sale of their products in competitive markets.
As a result of all this, in such a market, none of the sellers and buyers is able to have a decisive influence on the price and scale of sales. However, such a model of competition and pricing practically does not exist in reality.
6. Characteristics of the imperfect competition market
The best way characteristics of the market model of imperfect competition. comparison of the latter with the perfect competition market model and identifying differences between them. Therefore, first we will say several things. words about a perfectly competitive market (this is an ideal model, since it does not exist in reality). The market model of perfect competition is characterized by the following features: 1. the presence in the market of many independent sellers and buyers, each of whom produces or buys only a small share of the total market volume of a given product; 2. homogeneity of the product and the same perception of sellers by buyers; 3. the absence of barriers to entry for new producers into the industry and the possibility of free exit from the industry; 4.full awareness of all market participants; 5.rational behavior of all market participants.
Now, based on the differences in the above points, we will try to outline a model of an imperfectly competitive market.
Speaking about the market of imperfect competition, we can go deeper into the analysis, for example, of oligopoly or monopolistic competition, which are phenomena. real subjects of the imperfect competition market, however, touching on, let alone analyzing, these subjects is not the case. Our task, therefore, we will limit ourselves to considering the features of a pure monopoly. A monopoly can be characterized as a market structure in which one firm is supplier to the market of a product that does not have close substitutes. A monopoly product is unique in the sense that there are no good or close substitutes for the product. From the buyer's point of view, this means that there are no acceptable alternatives, resulting in the buyer having to purchase the product from the monopolist or do without. In contrast to a perfectly competitive market entity, which "agrees with the price", the monopolist dictates the price, that is, it exercises significant control over the price. And the reason is obvious: it issues and therefore controls the total supply. With a downward-sloping demand curve for its product, a monopolist can cause a change in the price of the product by manipulating the quantity of the product supplied. One of the most important distinguishing features of monopoly is the phenomenon. the presence of barriers to entry into the industry, that is, restrictions that prevent the emergence of additional sellers in the market of a monopoly firm. Barriers to entry are necessary to maintain monopoly power. Among the main types of barriers to entry into markets that enable the emergence of a monopoly and help maintain it are the following:
1.Exclusive rights obtained from the government.
2.Patents and copyrights, which provide creators of new products or works of literature, art and music with exclusive rights to sell or license the use of their inventions and creations. Patents may also be granted for production technologies. Patents and copyrights provide monopoly positions only for a limited number of years. Once the patent expires, the barrier to entry into the market disappears.
3. Ownership of the entire supply of any productive resource. An example of this is the position of De Beers in the diamond market, which has monopoly power in the diamond market due to its control over the sales of about 80% of rough diamonds suitable for making jewelry.
Any unique ability or knowledge can also create a monopoly. Talented singers, artists or athletes have a monopoly on the use of their services.
A natural monopoly is an industry in which long-run average costs are at a minimum only when one firm serves the entire market. An example of a natural monopoly is water supply, telephone communications, mail within a particular region. It should be especially noted that in such industries, economies of scale are especially pronounced, and at the same time, competition is not feasible.
Summarizing the assessment of the imperfect competition market model, it should be noted in all fairness that monopoly and perfect competition are phenomena. two extreme forms of market structure. Real market structures lie between these two extreme cases.
1.Task (( 1 )) TK 1
The term "perfectly competitive firm" means that the firm...
R which does not influence the formation of the market price
other market participants
R can leave the perfectly competitive market at any time
2. Task (( 1 ))T3 1
When analyzing market structures Usually there are _______________________________________ type (model)
3. Task (( 1 )) TK 1
Distribute the types of market structures as the number of firms operating in them increases:
1: monopoly
2: oligopoly
3: monopolistic competition
4: perfect competition
4. Task (( 1 )) TK 1
Freedom of entry and exit from the market is characteristic only for...
R perfect competition
5. Task (( 1 )) TK 1
The perfect competition market model is characterized by:
R many small firms
R very easy conditions for entering the industry
R lack of control over price by the enterprise
Average level
6. Task (( 1 )) TK 1
The short-run supply curve of a competitive firm is:
R is the part of the marginal cost curve located above the average cost curve variable costs
7. Task (( 1 )) TK 1
A form of exchange without influencing the price of one’s goods, but with the possibility of increasing profits by reducing costs and transferring capital to highly profitable industries is called...
R perfect competition
8. Task (( 1 )) TK 1
If in the market everyone can manage their income and is responsible for the results of their activities and the “invisible hand” sets the price for buyers and sellers, then this market is...
R competitive
9. Task (( 1 )) TK 1
The market that best suits the conditions of perfect competition...
R stocks and bonds
10. Task (( 1 )) TK 1
Correspondence between types of market structures and their characteristics:
11. Task ((43 ))T3 43
The market constraint on the activities of a competitive firm is that:
R the market dictates a certain price level
12.Task (( 1 )) TK 1
Economic profit:
R cannot occur in a competitive market in the long run
13. Task (( 1 )) TK 1
In the short run, a profit maximizing firm will stop production if it turns out that...
R price is less than minimum average cost
14. Task (( 1 )) TK 1
Marginal product in in cash(MRP), marginal product in
in physical terms (MP), unit price of output (P) in
conditions of perfect competition obey the following relationship...
R MRP = МРхР
15. Task (( 1 )) TK 1
The conditions of perfect competition include:
16. Task (( 1 ))TZ 1
An enterprise minimizes losses in conditions of perfect competition if, at an optimal volume of production:
R price is above average variable cost, but below average total costs
17. Task (( 1 )) TK 1
The characteristics of a perfectly competitive firm are:
R A firm is in equilibrium when its marginal revenue equals its marginal cost.
R average and marginal cost curves are U-shaped
R demand curve for a firm's product is a horizontal line
Monopoly
A basic level of
1. Task (( 1 )) TK 1
Price discrimination is:
R selling the same product to different customers according to different prices
2. Task (( 1 )) TK 1
If in a market one seller dictates the price, and other sellers cannot enter, then this is...
R monopoly
3. Task (( 1 )) TK 1
Price discrimination refers to the market...
R monopolies
4. Task (( 1 )) TK 1
A monopoly is a market structure in which:
R blocked entry conditions exist
R there is one seller and several buyers in the market
5. Task (( 1 )) TK 1
A sign of only a monopoly market is:
R one seller
6. Task (( 1 ))TZ 1
A monopoly that exists in an industry that exploits unique natural resources is called...
R natural monopoly
Average level
7. Task (( 1 ))T31
Negative consequences market monopolization are:
R producer (monopolist) loses interest in innovations
R the preconditions are created for stagnation in the economy and the flourishing of bureaucracy
R production efficiency decreases
8. Task (( 1 )) TK 1
The main goal of antimonopoly policy is:
R competition support
9. Task (( 1 )) TK 1
The monopoly offers ____________________ products on the market.
R only unique
10. Task (( 1 )) TK 1
According to the Law of the Russian Federation “On Competition and Restriction of Monopolistic Activities in commodity markets A firm has a dominant position if its market share...
R exceeds 35%
11. Task (( 1 )) TK 1
The following can serve as barriers to entry into a monopolistic industry by new producers:
R patents and licenses
R lower costs of large production
R legislative registration of exclusive rights
12. Task (( 1 ))TZ 1
In the long run, a monopolist, in contrast to a perfect competitor:
R is protected from competition from other firms
13. Task (( 1 )) TK 1
14. Task (( 1 )) TK 1
To get maximum profit, the monopolist must choose a volume of output at which...
R marginal revenue equals marginal cost
15. Task (( 1 )) TK 1
Unlike a competitive firm, a monopoly seeks...
R produce less product and set the price higher
16. Task ((8)) TK 8"
A market structure characterized by the clear dominance of one
buyer...
Correct answer: mon*pson#$#
17. Task (( 32 ))TZ 32
A natural monopoly occurs when...
R the enterprise mines or owns rare resources
18. Task (( 1 )) TK 1
A monopoly is likely to be:
R gas station in rural areas
19.Task (( 1 )) TK 1
The total cost function of the monopolist TS = 100 + 3Q, where Q is the quantity of products produced per month. The demand function for the monopolist's products is P = 200 - Q, where P is the price for the monopolist's products. If a monopolist produces 20 units. products per month, then his total income will be...
20. Task (( 1 )) TK 1
Under monopoly conditions, the following statement is true:
R profit is maximum if marginal cost equals marginal revenue
21. Task (( 1 )) TK 1
A profit-maximizing monopolist will reduce the price of its product if:
R marginal revenue is greater than marginal cost
22. Task ((46)) TK 46
An increase in the monopolist's average costs leads to:
R price increases only if marginal costs also increase
23. Task ((72)) TK 72
A firm that has monopoly power in the product market, but does not have monopsony power in the factor markets, will hire:
R pay higher wages compared with competitive firms
24. Task (( 1 ))TZ 1
A firm has monopoly power if it...
R sets the price based on the demand curve
Monopolistic competition and oligopoly
A basic level of
1. Task (( 1 )) TK 1
Cartel is...
R form of monopoly in which its participants, while maintaining commercial and production independence, agree among themselves on prices, division of the market, exchange of patents
2. Task (( 1 )) TK 1
In an oligopoly, an enterprise...
R coordinates its pricing policy with partners
3. Task (( 1 ))TOR 1
Oligopoly is a market structure in which...
R a small amount of competing firms producing homogeneous or differentiated products
4. Task (( 1 )) TK 1
Market models of imperfect competition include:
R oligopoly
R monopsony
5. Task (( 1 ))T3 1
A market structure in which a small number of competing firms operate and produce a differentiated or standardized product is called...
Correct answer options: *lig*gender#$#
6. Task (( 1 )) TK 1
Monopolistic competition is not characterized by:
R interdependence of sellers in setting prices
7. Task (( 1 )) TK 1
An oligopoly can be considered a situation when an industry includes...
R from 2 to 10 companies
Average level
8. Task (( 1 )) TK I
Towards market structures in which firms do not receive
economic profit in the long term include:
R perfect competition
R monopolistic competition
9. Task (( 1 )) TK 1
Perfectly competitive and monopolistic markets have one thing in common:
There are many buyers and sellers in the market
10. Task (( 1 )) TK 1
If the price on the market is focused on the leader selling the bulk of the goods, and access to the market is limited by the scale of capital, then this...
R oligopoly
11. Task (( 1 )) TK 1
The founder of the theory of oligopoly is...
R A. Cournot
12. Task (( 1 )) TK 1
The oligopodiet market is similar to the monopolistic competition market in that:
R firms have market power
13. Task (( 1 )) TK 1
In conditions of monopolistic competition, the enterprise produces:
R differentiated product
14. Task (( 1 )) TK 1
Non-price competition includes:
R product differentiation
15. 3 task((1))Т31
To the basic principles of pricing for oligopolistic market relate:
R price collusion
R price leadership
R price cap
16. Task (( 1 )) TK 1
A form of monopoly in which its participants, while maintaining commercial and production independence, agree among themselves on prices, division of the market, and exchange of patents is called:
Correct answer options: kart*l#$#
17. Task (( 1 ))T3 1
An association of entrepreneurs that takes upon itself the implementation of all commercial activities while maintaining the production and legal independence of the enterprises included in it is called:
Correct answer: S*ndika*
18. Task ((33 ))TZZZ
An unspoken agreement on prices, division of markets and other ways to limit competition is...
R conspiracy
19. Task (( 1 ))T3 1
A characteristic manifestation of non-cooperative behavior of an oligopoly is...
R price war
High level
20. Task (( 1 )) TK 1
A cartel member could increase his profits:
R selling your goods at a lower price than other cartel members
R conducting active non-price competition
21. Task (( 1 )) TK 1
If a firm operating in the market does not make economic profit in the long run, then such a firm operates in the industry:
R perfect competition
R monopolistic competition
22. Task (( 1 ))T31
Monopolistic competition occurs in markets for goods whose elasticity of demand...
R is usually high
23. Task (( 1 )) TK 1
Demand for a firm's products under monopolistic competition...
R is more elastic than that of a pure monopolist, but less elastic than that of a perfectly competitive firm
