Monopoly

1.

Monopoly

2.

Monopoly-market in which there is only one
seller.
Monopolistic enterprises must satisfy all potential
buyers of certain goods within a given market,
and therefore identified with the enterprise
sector. In a broad sense monopoly - is a
situation in which sellers (producers) is so
small that each of them can influence the total
supply and price of products sold.

3.

The main characteristics of pure monopoly are:
no perfect substitute product for companymonopolist;
inability to market entry of other companies;
a large number of buyers on the market;
perfect awareness of prices of goods physical
signs and other parameters of the market

4.

The powerful capitalist associations that arise
in a concentration of production and capital
and concentrate in their hands the manufacture
or sale of certain goods to maximize profits.

5. The essence of monopoly

One of the negative features are that the market
creates monopolies and monopolistic
tendencies in the economic system.
History monopolies reaches antiquity. Find
mention of it already in the ancient Greek
philosopher Aristotle. He attributes it to the
"art amass property," noting that "in the sense
nazhyvannya advantageous property if
someone manages to capture any monopoly."

6.

English philosopher Thomas Hobbes describes
monopolies built by feudal state for foreign
trade. He calls them corporations, "whose
purpose is to increase the profits of monopoly
by buying and selling at home and abroad."
Monopolistic tendencies manifested at all
stages of market processes, but become
apparent only in the XIX century.

7. Types of monopolies

Natural monopoly arises due to objective reasons. It reflects
a situation where the demand for this product or service
best met by one or more firms. At its core - especially
production technologies and customer service. This
competition is not possible or desirable for entry into the
industry in other companies, the cost of manufactured
products increase. The reason is the economy of scale from the more product produced, the lower its cost. One example
is energy, telephone services, telecommunications, pipelines
and so on. D. In these areas there are a limited number, if
not the only national company, so, naturally, they occupy a
monopoly position in the market. The elimination or
downsizing of monopolies uneconomical. The highest
efficiency of industry provided only if there is one producer
or distributor (distributor).

8.

Administrative monopoly is caused by the actions of
public bodies. 3 one hand, the provision of individual
companies the exclusive right to perform certain types
of activity. Thus the Dutch and English East India
Company in the early 17th century. the government
granted exceptional right to trade with India. 3 other
hand, this organizational structure for state enterprises
when they are combined and are subject to different
central boards, ministries, associations. There are
usually grouped enterprise of a field they act in the
market as a single economic entity and no competition
between them. The economy of the former Soviet
Union belonged to the most monopolized in the world.
The dominant there was just an administrative
monopoly, especially the all-powerful monopoly of
ministries and agencies. Moreover, there was an
absolute state monopoly on the organization and
management of the economy, which was based on the
dominant state ownership of the means of production.

9.

The most common is an economic monopoly.
That's about it coming mainly discussed further.
Its appearance is due to economic reasons, it grows
based on patterns of economic development. This
is the entrepreneurs who have managed to gain a
monopoly position in the market. Before him are
two main ways. The first is the successful
development of the company, constantly
increasing its scale by concentrating capital. The
second - much faster - based on the processes of
centralization of capital, ie voluntary associations
or takeover of bankrupt winners. Way or another,
or combining both, the company reaches such a
level when it begins to dominate the market. It
goes into a different category of companies: one of
those "extras" that do not play a significant role,
and one in particular can not affect the overall
situation, the category of "soloists" who actually
play the market "performance."

10. The shape of the union capital

Cartel - an association of several enterprises in
one branch of production, whose members
maintain their ownership of the means of
production and the manufactured product,
industrial and commercial independence, and
agree to share each in the total volume of
production, prices, markets. There are many
international cartels. The most famous of them
- a cartel Organization of Petroleum Exporting
Countries (OPEC). He tries to regulate oil
production of its members, in order to control
the price to maximize profit group.

11.

Syndicate - an association of several enterprises in one
industry, whose members retain ownership of the
means of production, but lose ownership of the
manufactured product, and thus maintain production,
but lose their commercial independence. Syndication
sales of goods is carried out with total sales office.
More complex forms of monopoly arise when the
process of monopolization extends to direct
production. In this case there is a need to integrate
within a corporation consecutive interconnected
production of several industries, ie vertical integration,
or a combination. For example, within the automotive
giant corporations may associate companies that
produce raw materials, produce steel, automobiles and
other manufactured. On this basis, there is such a
higher form of monopoly as trust.

12.

Trust - an association of several enterprises in
one or more industries, whose members lose
ownership of the means of production and the
manufactured product, industrial and
commercial independence, that combine
production, marketing, finance, management,
and the amount of invested capital owners of
individual enterprises receive shares of the
trust, which give them the right to participate
in management and assign the appropriate
share of the profits.

13.

Causes of monopolies associated primarily with
changes in the technological mode of production.
A prerequisite for this change was the Industrial
Revolution late. XVIII - early. XIX century.,
Technical inventions, new industries and the rapid
development of production in many of them,
especially in the light industry.
A process of concentration of production, when
the company, instead of doing one another
grueling competition, enter into an agreement that
is united and capital.

14. Causes

Centralization of production - is the increase in
production resulting from the merger of
several companies into one and general
management. (To survive in this fight, get more
profit).

15.

The centralization of capital - a capital increase
in size, due to consolidation or merger of
previously independent capital. For example:
the formation of joint stock companies.

16.

As a result of government actions (intentional
or her special steps).

17.

The emergence of shareholder capitalist property
where individual private property becomes a
brake on the productive forces. This means that at
the end of the XIX century. under the influence of
scientific inventions (new types of engines and t.
e.) needed to build such plants, which was unable
to build any capitalist. In addition, now begins the
construction of railroads and other large objects.
To gain the necessary funds separate capitalist
could perhaps through the decades. There is a
need for a new form of property that would be
able to quickly solve these problems. She became a
joint-stock capitalist property resulting from the
merger, combining multiple capitalists.

18.

Economic crisis.

19. Consequences

Monopoly position could lead to the following
consequences:
1. Dictate prices
2. Prevention of innovation, as a result of the
destruction of rivals