Emotional Regulation Technique For Your Life

A simple explanation for kids

The problem of relationship of the state and economic entities is one of the most difficult in economy. The state carries out the major functions in economic system. Objective economic prerequisites strengthen a role of the state in regulation of a social production.

Let's try to define the rule of a maximum of profit for the monopolist. The monopolist tries to maximize profit, increasing a difference between total income and joint costs. Therefore, for the monopolist, it is right that in a point of a maximum of profit of MR=MC (i.e. the limit income is equal to limit costs).

This feature leads to that the schedule of demand for the monopolist does not coincide with the schedule of the limit income any more as it is observed in case of the perfect competition. Each subsequent copy of goods not only itself has the smaller price, than previous, but also reduces the price of all consignment of goods intended by the monopolist to sale. Therefore the schedule of the limit income of the monopolist has more abrupt inclination, than the schedule of individual demand for its production.

Demonopolization of economy and creation of conditions for development of the competition in the monopolized commodity markets to high degree of concentration of deliveries, elimination of barriers to development of the competition and an entrance on the markets of other economic entities.

trusts. The trust is an association of property and management of a number of the enterprises of one or several industries with a complete elimination of their independence both in commercial, and in production the relations;

In the conditions of market economy lines of natural monopoly are inherent in the majority of purely monopolized branches. In this regard there is a need of public price control and tariffs of the monopolized markets.

Even if the market countries face the facts of inclination of the population to monopolies, it is not surprising that in the post-socialist countries the part of the population perceiving them as something natural is rather great.

The monopoly represents the difficult, multidimensional phenomenon therefore at its definition it is expedient to apply an integrated approach. As a rule, triple definition of monopoly is used, namely the monopoly is defined:

as directly large enterprise (firms or merger of the enterprises (firms), productions focusing the most part in the hands and sales of any goods and controlling in this regard a situation in a certain field of activity.

This direction is not connected with suppression of monopolies directly. It proceeds from such obvious fact that force of monopoly of subjects is weaker, than competitive market mechanisms work more effectively and than, respectively, competitive market structures are more developed. Respectively, the main task of this direction is reduced creating the situation complicating or doing to simply unprofitable separate firms in economy to abuse their monopoly position, to provide a peculiar antimonopoly prevention in economy and society.