Presentation: my favorite game is monopoly. Presentation on the topic "monopoly in a market economy." Monopoly power indicator

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Monopoly (from the Greek mono - one, poleo - seller) is the exclusive right to carry out any type of activity (production, trade, fishing, etc.), granted to one person, a certain group of persons or the state.

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A monopoly presupposes the fulfillment of the following conditions: The monopolist is the only producer of this product; The products are unique in nature and have no close substitutes; Penetration into the industry for other firms is blocked by a number of barriers; The monopolist's influence on the market price is very high.

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Barriers to entry into a market with a monopoly: exclusive rights obtained from the government or local authorities; patents and copyrights; ownership of resources, such as sources of raw materials; advantage of low costs of large production.

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Advantages of low costs of large-scale production: ATS Q ATSk ATSm ATSk - average costs of a competitive company ATSm - average production costs of a monopolist firm 1/2Q Qm

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A closed monopoly is protected from competition through legal restrictions and prohibitions (most often it is a government monopoly). An open monopoly is a monopoly in which one firm, at least for some time, becomes the sole supplier of a product, but has no special protection from competition. A natural monopoly occurs in an industry in which long-run average costs are at a minimum only when one firm serves the entire market. An artificial monopoly is an association of enterprises created for the sake of obtaining excess profits and establishing market power.

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Features of the interaction of supply and demand in a monopoly market The monopolist has a certain power over the market, since he alone determines the supply of goods. In addition, he has power over the price of the product, but this power is not absolute, since the price also depends on demand, and supply depends on the price.

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To measure monopoly power, the Lerner coefficient is used: L=(P-MC)/P, where L is the Lerner coefficient; P – price; MC – marginal cost.

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Determining how high a monopolist's price can be is related to demand and its elasticity. Prices can be increased if the corresponding reduction in demand does not entail a drop in the monopoly's income and profits. Otherwise, in order to increase income, the monopoly is forced to increase production, which implies a certain reduction in price in accordance with the law of supply and demand. Q P D1 D2 P1 P2 Q1 Q2 Q3 Q4

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The monopoly searches for prices guided by the same rule as enterprises operating in a perfect market: 1. The volume of production and corresponding supply of goods must be such that marginal costs (MC) are equal to marginal revenue (MR): MC = MR 2. The monopolist considers MC and MR as the basis for setting the price - it should not be lower than them. However, in a monopolistic enterprise, unlike enterprises operating in conditions of perfect competition, marginal revenue is less than price (P) and, accordingly, average revenue (AR): MR< P = AR

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Features of the interaction of supply and demand in a monopoly market Q P MR MC (=S) D Q wholesale Рм ATC Pe E ATCm Qe Monopoly profit

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Problem 1. The fixed costs of the monopoly are 1,500 rubles. The dependence of the monopoly's variable costs on the volume of output is presented in the table: There is data on the volume of demand for the monopoly's products at various price levels: Determine: What volume of production will the monopoly choose and the corresponding price level; Monopoly profit. R, rub. 5000 3500 3100 2800 2600 2380 2100 Qd, pcs. 0 1 2 3 4 5 6

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Solution: Monopoly, when determining the optimal volume of production, is guided by the rule: MR=MC To solve the problem it is necessary to find MR, MC and ATS. TC=FC+VC; MC = (TCn-TCn-1)/(Qn –Qn-1); ATC= TC/Q; МR = (TRn-TRn-1)/(Qn –Qn-1); TR= P*Qd.

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We summarize the obtained data in a table: Q, pcs. FC, rub. VC, rub. TC, rub. ATS, rub. MS, rub. R, rub. Qd, pcs. TR, rub. MR, rub. 0 1 2 3 4 5 6 1500 1500 1500 1500 1500 1500 1500 0 1000 1500 2500 4500 7000 10000 1500 2500 3000 4000 6000 8500 11500 - 250 0 1500 1333 1500 1700 1916 - 1000 500 1000 2000 2500 3000 5000 3500 3100 2800 2600 2380 2100 0 1 2 3 4 5 6 0 3500 6200 8400 10400 11900 12600 - 3500 2700 2200 2000 1500 700

“Modeling of economic systems” - Banking system. The principle of rational expectations. World financial crisis. Description of the subjects' behavior. Economy of the period of financial stabilization. Initial representations. Calculation results. Analytical calculations. Model of the banking system reaction. Economics of a period of high inflation. Planned economy with a cooperative sector.

“Market relations in the economy” - Law of supply. The market and its role in economic life. Stock market (capital market). Demand. Types of markets. Offer. Signs of the market. Markets by type of competition. Change in demand function. Market infrastructure. Market features. Competition is rivalry between participants in a market economy. Market mechanism.

“Social market economy” - Production. Society. Social and ecosocial market economy. Types of economic systems. Maintaining competition. Social market economy. Economic benefits. Application. Method of organizing economic activity. Skill. Goods. Needs. Destruction of human living conditions.

“Models of economic systems” - Advantages of a command-administrative economy. Traditional economics. Market economy. Swedish model of mixed economy. German model of mixed economy. Mixed economy. General scheme of a mixed economy. Conditions for the functioning of a market system. Disadvantages of a command economy.

“Property” - Variety of forms of ownership. The theory of property rights. Objects and subjects of property. The essence of property as an economic category. Property relations in a market economy. Property and power. Analysis of property as an economic relationship. Variety of forms of ownership according to the form of ownership.

“Types of economic systems” - Advantages and disadvantages of traditional economics. Mixed economic system. Traditional economic systems. What to produce. Market economic system. Advantages and disadvantages of a market economy. Traditional economic system. Command (planned) system. Types of economic systems.

There are 18 presentations in total

Monopoly (from the Greek μονο - one and πωλέω - I sell) -
this is a large capitalist enterprise,
controlling the production and marketing of one or
several types of products. This is the kind of structure
which there is no competition in the market and
one company operates. She produces a unique,
a product that has no analogues and is protected from entry
to the market of new companies.

The main features of a monopoly:

One company is the manufacturer of this product and
sole service provider;
A monopoly product is unique in the sense that it does not exist
good or close substitutes from the buyer's point of view,
which means that there are no acceptable alternatives;
A pure monopolist dictates the price and enforces it
significant control;
If the monopolist is going to continue to exist,
then he will use all means to block entry into
industry of new firms.

Reasons for the emergence of monopolies

The desire to receive monopolistic profit - profit
above average, possible as a result of the fact that the consumer
lacking an alternative;
High share of fixed costs that require
one-time large investments in creating a business and in the case of
the emergence of competition does not pay off;
Legislative barriers to activities;
(licensing, certification)
Foreign economic policy. It is aimed at protecting the market
from foreign competition in order to support domestic
subjects.
Acquisitions and mergers of companies.

Types of monopolies

Natural monopoly (railway, systems
water supply) - enterprises united by a single sales
organization; state of the commodity market in which
satisfying demand in this market is more efficient in the absence
competition due to technological features of production.
State (closed) monopoly - a monopoly created
by the force of legislative barriers that determine product
boundaries of the monopoly market, subject of monopoly, form
control and regulation of its activities, as well as the competence
regulatory authority.
Open monopoly is a temporary situation that exists in
as a result of the emergence of a new technology or product during a period
until competitors have mastered this technology and production
of this product.

Forms of monopolistic associations

The need for antitrust policy

Due to the high level of concentration of economic resources,
monopolies create opportunities to accelerate technical
progress. However, these opportunities are realized in cases where
such acceleration contributes to the extraction of monopoly high
profits. Large firms with significant power are
a desirable phenomenon in economics, since by doing
research, they provide benefits to both themselves and society in
in general. But there is compelling evidence that monopolies play
a particularly important role in accelerating technological progress, no.
Antimonopoly policy is one of the areas of government
regulation of the economy, representing a complex of state
measures aimed against monopolization of production and market and
ensuring the development of competition among commodity producers.

The state does not strive to make all markets perfect
competitive, but attempts to eliminate serious market imperfections.
It creates an environment where competition is encouraged rather than monopolism,
where the first behavior option is more profitable than the second. Thus,
antimonopoly policy is a tool
administrative regulation of the economy, with the aim of
preventing economic imbalances or
socially undesirable changes, its main points
are:
protection and promotion of competition;
control over dominant firms
On the market;
price control;
protecting interests and promoting the development of small and medium-sized
business.

The main goal of a monopolist is to obtain
maximum profit. For this purpose the company operates
solely in their own interests, therefore
government regulation of monopolies is one
one of the main factors ensuring normal
functioning of the economy. Undoubtedly, in some
cases the existence of monopolies is justified
and necessary, but over these processes must
control to prevent
abuse of monopoly position.
Monopoly is a serious problem
market economy and requires immediate
control by the state. Relying on
existing laws and adopting new ones, indeed
working laws aimed at limiting
monopoly power and preventing the creation of new
monopoly entities, carrying out effective
antimonopoly policy, it is possible to resolve this
Problems.

Slide presentation

Slide text: Monopoly in a market economy Economics lesson Iskandarov I.R.

Slide text: Monopoly (from the Greek mono - one, poleo - seller) is the exclusive right to carry out any type of activity (production, trade, fishing, etc.), granted to one person, a certain group of persons or the state.

Slide text: Monopoly presupposes the following conditions: The monopolist is the only producer of this product; The products are unique in nature and have no close substitutes; Penetration into the industry for other firms is blocked by a number of barriers; The monopolist's influence on the market price is very high.

Slide text: Barriers to entry into a market with a monopoly: exclusive rights obtained from the government or local authorities; patents and copyrights; ownership of resources, such as sources of raw materials; advantage of low costs of large production.

Slide text: Advantages of low costs of large-scale production: ATS Q ATSk ATSm ATSk - average costs of a competitive company ATSm - average production costs of a monopolist company 1/2Q Qm

Slide text: Types of monopolies: Closed Open Natural Artificial

Slide text: A closed monopoly is protected from competition through legal restrictions and prohibitions (most often it is a state monopoly). An open monopoly is a monopoly in which one firm, at least for some time, becomes the sole supplier of a product, but has no special protection from competition. A natural monopoly occurs in an industry in which long-run average costs are at a minimum only when one firm serves the entire market. An artificial monopoly is an association of enterprises created for the sake of obtaining excess profits and establishing market power.

Slide text: Features of the interaction of supply and demand in a monopoly market A monopolist has a certain power over the market, since he alone determines the supply of goods. In addition, he has power over the price of the product, but this power is not absolute, since the price also depends on demand, and supply depends on the price.

Slide text: To measure monopoly power, the Lerner coefficient is used: L=(P-MC)/P, where L is the Lerner coefficient; P – price; MC – marginal cost.

Slide No. 10

Slide text: Determining how high a monopolist's price can be is related to demand and its elasticity. Prices can be increased if the corresponding reduction in demand does not entail a drop in the monopoly's income and profits. Otherwise, in order to increase income, the monopoly is forced to increase production, which implies a certain reduction in price in accordance with the law of supply and demand. Q P D1 D2 P1 P2 Q1 Q2 Q3 Q4

Slide No. 11

Slide text: A monopoly searches for prices guided by the same rule as enterprises operating in a perfect market: 1. The volume of production and corresponding supply of goods must be such that marginal costs (MC) are equal to marginal revenue (MR): MC = MR 2. The monopolist considers MC and MR as the basis for setting the price - it should not be lower than them. However, in a monopolistic enterprise, unlike enterprises operating in conditions of perfect competition, marginal revenue is less than price (P) and, accordingly, average revenue (AR): MR< P = AR

Slide No. 12

Slide text: Monopoly pricing rule: P = AR > MC = MR

Slide No. 13

Slide text: Features of the interaction of supply and demand in a monopoly market Q P MR MC (=S) D Q wholesale Рм ATC Pe E ATCm Qe Monopoly profit

Slide No. 14

Slide text: Problem 1. The fixed costs of the monopoly are 1,500 rubles. The dependence of the monopoly's variable costs on the volume of output is presented in the table: There is data on the volume of demand for the monopoly's products at various price levels: Determine: What volume of production will the monopoly choose and the corresponding price level; Monopoly profit. R, rub. 5000 3500 3100 2800 2600 2380 2100 Qd, pcs. 0 1 2 3 4 5 6

Slide No. 15

Slide text: Solution: Monopoly, when determining the optimal production volume, is guided by the rule: MR=MC To solve the problem it is necessary to find MR, MC and ATS. TC=FC+VC; MC = (TCn-TCn-1)/(Qn –Qn-1); ATC= TC/Q; МR = (TRn-TRn-1)/(Qn –Qn-1); TR= P*Qd.

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Slide text: We summarize the obtained data in a table: Q, pcs. FC, rub. VC, rub. TC, rub. ATS, rub. MS, rub. R, rub. Qd, pcs. TR, rub. MR, rub. 0 1 2 3 4 5 6 1500 1500 1500 1500 1500 1500 1500 0 1000 1500 2500 4500 7000 10000 1500 2500 3000 4000 6000 8500 11500 - 250 0 1500 1333 1500 1700 1916 - 1000 500 1000 2000 2500 3000 5000 3500 3100 2800 2600 2380 2100 0 1 2 3 4 5 6 0 3500 6200 8400 10400 11900 12600 - 3500 2700 2200 2000 1500 700

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Slide text: From the table data it follows that the equality MR = MC is achieved at Q = 4. We will find the price level corresponding to this volume from the demand scale: P = 2600. The profit of the monopoly is found as the difference between TR and TS: 10400-6000 = 4400 rubles. Answer: the monopoly will choose a production volume equal to 4, the corresponding price level = 2600, monopoly profit = 4400.

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Slide text: Graphic solution to the problem: 1 2 3 4 5 6 0 Q 1000 1500 2000 2500 3000 MR MC D 2600 ATC A

Slide No. 19

Slide text: Problem 2. A profit-maximizing company is a monopolist in the domestic market, where the demand for its products is specified by the function: Qd = 90-2.5P. On the foreign market, it can sell any quantity of products at a fixed world price. The firm's total cost function has the form: TC = Q² +10Q+50. Determine the foreign market price if it is known that the firm sold ¾ of its output on the domestic market.

Slide No. 20

Slide text: Solution: Let m be the world market price for the monopolist’s products; The company will sell products in the domestic market until its MRinternal. will not be equal to MR of the external market, i.e. m. That. the volume of production and sales in the domestic market is determined by the equality: MR internal. = m After this, the equilibrium of the monopolist is determined by the condition: MC = m (similar to the condition of a market with perfect competition) Thus. the total volume of production and sales is determined from the equality: MC=m

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Slide text: In the domestic market, production volume (q) will be: Qd=90-2.5p Pd=36-0.4q MR=TR׳=(Pd*q)׳=(36q-0.4q²)׳ =36- 0.8q MR=m 36-0.8q=m q=1.25(36-m) Total production volume (Q): MC=TC׳= (Q² +10Q+50)׳ = 2Q +10 MC=m 2Q +10=m Q=(m-10)/2 From the condition that q=3/4Q, we find: 1.25(36-m)=3/4(m-10)/2 m=30 Answer: price external market = 30.

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Having studied the topic, the student should know: the prerequisites for the development and characteristic features of a monopoly; main types of monopolies and forms of monopolistic associations; fundamentals of state antimonopoly policy; be able to: identify and analyze the factors of influence of monopolies on the economy; apply the basic terms used in antitrust legislation.

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The word "monopoly" comes from the Greek "monospolien" - "sole seller". Monopoly is the exclusive right of the state or other economic entity in any field of activity. Monopolies are large business associations (cartels, syndicates, trusts, concerns and others) that are privately owned (individually, group or joint stock) and exercise control over industries, markets and the economy based on a high degree of concentration of production and capital in order to establish monopoly prices and extracting monopoly profits. Dominance in the economy serves as the basis for the influence that monopolies have on all spheres of life in the country.

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By its nature, a monopoly acts as a force that undermines free competition and the spontaneous market. A perfect monopoly is a fairly rare phenomenon. It presupposes the fulfillment of the following conditions: 1) the monopolist is the only producer of this product; 2) the product is unique in the sense that it has no close substitutes; 3) the penetration of other firms into the industry is blocked by a number of circumstances, as a result of which the monopolist holds the market in its full power and fully controls the volume of production output; 4) the degree of influence of the monopolist on the market price is very high, but not unlimited, because he cannot set any price, no matter how high. Characteristic features of a monopoly: a single seller; lack of close substitutes for products; significant control over price by the monopolist; barriers to entry into the industry.

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Among the reasons for the existence of monopolies, the following stand out: − “natural monopoly”; - a single firm has control over some rare and extremely important resources, either in the form of raw materials or in the form of knowledge protected by a patent or kept secret; − state restriction (licenses or franchises allowing this type of activity to only one company). The forms of monopolistic associations include: cartel, syndicate, trust (single-industry, combined), concern, conglomerate. There are three types of monopolies depending on the ways in which the corporation achieves the position of the only seller of goods or services on the market: closed monopoly; natural monopoly; open monopoly. The emergence of monopolies is a historically inevitable economic process, conditioned by the development of concentration of production and scientific and technological progress.

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The following can be identified as prerequisites for the emergence and growth of monopolies: growth of shareholder ownership; the new role of banks and the development of a participation system; monopolistic mergers as a way to centralize capital; the evolution of forms of capitalist associations and the newest forms of associations. There are two ways to form monopolies: through capitalization of profits; through mergers and acquisitions. In modern conditions, there is a significant predominance of the latter method. An important characteristic of monopolies of the second half of the 20th century is their entry into the international arena not only in the field of trade, but also directly in production, organized in the form of branches and subsidiaries abroad, i.e. transformation of national monopolies into transnational corporations (TNCs).

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A necessary attribute of the market is competition. Competition is the competitiveness of economic entities when their independent actions effectively limit the ability of each of them to unilaterally influence the general conditions of circulation of goods on the corresponding commodity market and stimulate the production of goods necessary for the consumer. In contrast, unfair competition is any actions (inaction) of business entities aimed at acquiring advantages in business activities that are contrary to national antimonopoly legislation, business customs and can cause or have caused losses to other business entities or damage their business reputation. A real threat to competition arose at the end of the 19th century in the form of monopolistic entities in the economy. Monopolistic tendencies in different forms and to varying degrees manifest themselves at all stages of the development of market processes. But their modern history begins in the last third of the 19th century, during the economic crisis of 1873. The interconnectedness of phenomena - crises and monopolies - indicates one of the reasons for monopolization, namely: the attempt of many firms to find salvation from crisis shocks in monopolistic practice.

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An international monopoly is a large firm with assets abroad or an alliance of firms of different nationalities that establish dominance in one or more areas of the world economy in order to maximize profits. According to their forms, international monopolies are divided into two main groups: trusts and concerns based on common monopolistic property (transnational and multinational monopolies) and intercompany alliances (cartels and syndicates). The economic basis for the emergence and development of international monopolies is the high degree of socialization of capitalist production and the internationalization of economic life. There are two types of international monopolies. The first is transnational monopolies. The second type is actually international monopolies. Transnational trusts and concerns are companies owned, controlled and managed by entrepreneurs of one country. They are national in capital and control, but international in their scope of activity. Unlike transnational monopolies, the owners of multinational trusts and concerns are entrepreneurs from not one, but two or more countries. Their characteristic feature is the international dispersion of capital and the multinational composition of the company's core.

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Monopolization of the economy is the process of firms seizing key positions in the field of production and sales of products, establishing their monopoly. Monopolization of the economy can have a natural or artificial origin. The lowest forms of monopolization of the economy were temporary price agreements - their participants were obliged to sell their goods at uniform prices for a certain period. The objective basis of monopolism is the dominant position of an economic entity in the market, which allows it to have a decisive influence on competition, inflate prices and reduce production volume compared to a theoretically possible level, and impede access to the market for other economic entities. There are several reasons why monopolies exist. First: “natural monopoly”. If it costs less to produce any volume of output by one firm than to produce it by two or more firms, then the industry is said to be a natural monopoly. And the reason here is economies of scale: the more products produced, the lower their cost. The second reason: a single firm has control over some rare and extremely important resources, either in the form of raw materials or in the form of knowledge protected by a patent or kept secret.

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Antitrust Policy Monopoly means a certain degree of power over price. And this power can be based on various prerequisites: the capture of a significant share of industry production (concentration and centralization of production and capital), secret or explicit agreements on the division of markets and price levels, the creation of artificial shortages, etc. The prices of everything around us - from rockets to bread, light and heat in homes - depend on the prices of fuel, energy and transport. Energy and transport monopolies inflated them as much as they could. And in order to put a certain barrier to the destructive forces of monopolization, antimonopoly legislation was developed. Antitrust policy is an attempt to protect and enhance competition by creating barriers to the emergence, use, or defense of monopoly power. Antimonopoly legislation is regulatory legal acts in force on the territory of the state, containing provisions for the prevention, limitation and suppression of monopolistic activities and unfair competition. The specified regulatory legal acts may also be in force on the territory of two or more states when they enter into relevant agreements.

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Economic entities are legal entities of all forms of ownership engaged in the production, sale, acquisition of goods and services, as well as individuals engaged in independent entrepreneurial activities. Commodity market is the sphere of circulation of goods (products, works, services) that have no substitutes or interchangeable goods within the territories of the state or its part. Dominant position is the exclusive position of an economic entity in the product market, giving it the opportunity, independently or jointly with other economic entities, to dictate conditions to consumers and / or competitors, to impede access to the market for other economic entities or otherwise limit competition. Monopolistic activities are actions (inactions) of business entities, authorities and management that are contrary to national antimonopoly legislation, aimed at preventing, limiting or eliminating competition and/or infringing on the legitimate interests of consumers. Antimonopoly authority is a state body that monitors compliance with antimonopoly legislation.

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The emergence and development of monopolies in Ukraine The accumulated experience and scientific generalizations helped society understand all the “pros” and “cons” of monopolies, and develop a certain policy in relation to them, which was called monopoly. Its first result in Ukraine was antitrust legislation. It is laid down by antimonopoly laws: the Law of Ukraine “On limiting monopolism and preventing unfair competition in business activities” and the Law of Ukraine “On the Antimonopoly Committee”

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Features of antimonopoly policy in Ukraine The process of monopolization of the national economy has significant negative socio-economic consequences. However, there are also positive aspects. Due to the appropriation of high incomes, monopoly structures have more opportunities to finance research and development, introduce new equipment and technology, and retrain personnel. The effect of “production scale” of large enterprises allows them to produce cheaper and higher quality products. Large enterprises are more resilient in times of crisis, which reduces unemployment and social tension in society. Modern economic theory distinguishes between the concepts of “monopoly” and the concept of “large enterprise,” even if it has a high share of production and sales of products. A monopoly should only be considered an enterprise that uses market power - dictates prices, the volume of goods on the market, and destroys open competition. The state pursues an antimonopoly policy against such monopolistic enterprises in order to prevent abuse of their monopoly position.

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The main principles of the state's antimonopoly policy are the following: · freedom of economic activity; · free movement of goods, services and financial resources; · differentiation and protection of personal and public interests; · encouragement of competitive relations; · prevention of economic activities aimed at market monopolization and unfair competition; · specialization of regulation of natural and state monopolies.

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When examining the antimonopoly policy of Ukraine, it is necessary to emphasize that in our country this policy is not directed against large industries, but against monopolistic tendencies, against artificial restrictions on competition. The Antimonopoly Committee of Ukraine is responsible for ensuring state protection of economic competition. The main principle in its activities is occupied by provisions related to the identification and suspension of abuse of monopoly status. In order to prevent violations, promote demonopolization and comply with antimonopoly requirements in the process of transforming state power, the committee bodies compile and maintain a List of enterprises that occupy a monopoly position in the national and regional markets. The list has two sections: a recount of monopolists who operate in artificial monopoly markets and a general list of monopolists.

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The activities of the Antimonopoly Committee of Ukraine are based on legal principles, transparency, protection of the rights of business entities and on the principles of their equality before the law and the priority of consumer rights. Thus, it can be argued that in Ukraine today antimonopoly policy is generally directed not against monopolies, but against the abuse of a monopoly position in the market. The main task of antimonopoly policy in Ukraine is not to protect the interests of individual competing enterprises, but to prevent the deterioration of competition conditions. Consequently, the issue of limiting monopolism, supporting and developing economic competition should continue to be the most important element of the state’s economic policy. The most prominent representatives of monopolism in Ukraine are such companies as: Ukrtelecom, Naftogaz of Ukraine, Ukrspetsexport, Energoatom, Ukrzaliznytsya.

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