Types of cooperation of subjects of the market

The market structure is conditions in which the market competition proceeds.

The competition is a public form of collision of subjects of a market economy in the course of realization of their individual market interests.

The competition is a rivalry, fight between participants of the market for the most favorable conditions of production and sale of production and for receiving the greatest profit.

In any market there are 3 types of competitive fight:

1. The competition between buyers.

2. The competition between sellers

3. The competition between buyers and sellers

The competition is the main regulating mechanism of market economy.

Competition functions:

1. regulating

2. stimulating

3. differentiating

Types of competitive fight:

1. inside the branch and interbranch

2. Perfect and imperfect.

Many economists allocated four main signs influencing market structure and depending on them - four theoretically possible market structures.

Types of market structures	Sighs
Quantity and size of firms	Character of production	Entrance and exit conditions	Access to information
Perfect competition	a lot of small firms	Homogeneous production	Free	Equal access to information
monoploy	One firm	Unique production	It is impossible to enter	It is difficult to receive
oligipoly	A few firms	Homogeneous or diverse production	Some difficulties	Some limits
Monopolistic competition	Set of small firms	diverse production	Almost no difficulties	Some limits

The perfect competition represents a market mechanism on which there is a huge number of sellers, each of which can't affect market price. The perfect competition in real life meets seldom. More often we deal with the imperfect. The imperfect competition takes place when one of conditions of the perfect competition isn't observed at least. It exists in three main forms:

1.The monopoldistic competition arises where tens, hundred firms manage. Product differentiation is necessary for the accounting of tastes of the consumer. (hairdressing salons, cafe, shops, filling stations etc.) Restrictions for the accession to branch are patents for production, licenses, nameplates, trademarks etc.

2.The oligopoly is a branch in which the most part of sales is made by several firms, each of which is capable to influence market prices by own actions. The oligopoly is such market model at which a small amount of sellers offering either homogeneous, or the differentiated product dominates.

3.Monopoly is a market structure which allows to influence the goods price, supervising all or the most part of production. The main reason of emergence of monopolies is concentration of production. Economists distinguish three types of monopolies: closed, natural and open.

The closed monopolies are such monopolies which are legally protected from competitors (patent protection, the state monopoly of a mail service etc.)

Natural monopolies are such which are protected by effect of economy on production scales.

Open monopolies are those which have no special protection against competitors and consequently for some time become the unique producer of the goods.

The monopoly is such market on which one seller functions. The pure monopoly extremely seldom meets in life, especially on a national or world scale. The pure monopoly is much more often met on a local (local) level.

The patent is an exclusive right of trade over the invention.

The license is permission to be engaged in this or that kind of activity.

There are two forms of the imperfect competition is a price discrimination and a monopsony.

Price discrimination is when the firm sells identical goods to various firms at different prices.

The monopsony is a special market model on which only one buyer presents.

Control questions according to the section:

1. Property as economic category

2. Forms of ownership.

3. Transformation of forms and property relations.

4. Concept of privatization and stages of carrying out privatization in the Republic of Kazakhstan.

5. Models of economic systems.

6. Types of the organization of production: natural and commodity production.

7. Goods and its properties.

8. Benefits and their classification.

9. Essence and functions of money.

10. Market, its essence and functions.

11. Main participants of the market.

12. Classification of forms of the market.

13. Concept of demand and demand law.

14. Concept of supply and supply law.

15. Market balance.

16. Term "competition", types of competitive fight, competition function.

17. To characterize the monopolistically competition.

18. To characterize monopoly.

19. To characterize an oligopoly

20. To characterize the perfect competition.

Дата добавления: 2015-08-20