Let's imagine that some enterprise is engaged in the production of unique products, which others have no analogues. It is precisely the unique product that creates monopoly status for the enterprise, since it has no competitors. Let us conclude that monopoly is a business, which is completely controls the release of a unique product and its price, and has no competitors due to the fact that others do not release this product.

Advantages of a Monopoly

One of the most important benefits is market control. If in an oligopoly they look up to the price leader, then here you don’t need to look up to anyone - you produce products and set the price for them yourself. But it is unnecessary to set it too high - as people will start looking for similar products with a low price. Moreover, he is watching this antimonopoly service, which controls the activities of monopolists. Therefore, not everything is so simple - monopolies cannot set high prices or impose conditions on others, they must comply with antitrust laws.

Disadvantages of Monopoly

Probably control FAS is already a disadvantage for a monopoly, but compliance with the law is necessary. If we approach it from the other side, then the disadvantage of a monopoly may just be lack of competition, because if they exist, enterprises try to improve their product, thereby the development process takes place. If there is no one to fight with, then why change anything. Don't think that a unique product won't change over time - it will happen more slowly.

How to enter the monopoly market

This very difficult. Usually monopolists are the largest enterprises, they not only control the market, they can also easily crush competitors, especially newcomers. A small companies it simply lacks the power that a monopolist has. It is unprofitable to have competitors, therefore large company it will not be difficult to crush a small enterprise. There are many ways to do this, but that's another topic.

Does a monopoly exist? Examples of monopoly

Natural monopoly is rare in life. Usually it's infrastructure. Let's look at monopolies: Railway(RUSSIAN RAILWAYS). In fact, they are a monopolist in this area, since there are no other companies. Because of this, the quality of service does not improve. The same way the trains ran 50 years ago is the same way now. But modern ones are very expensive and travel only through Moscow and St. Petersburg.

What is a monopoly?

A monopoly is a market situation where one enterprise operates without significant competitors. Thanks to this, the monopolist can not limit its actions and offer customers goods on favorable terms. The first monopolies were created by state leaders, who gave special rights to certain enterprises to trade in certain products.

What is a monopoly: types

The division of monopolies into types is rather conditional. However, there are natural, state, pure monopolies, as well as conglomerates.

Natural monopoly

It occupies a special place in the market thanks to technological features in production.

A natural monopoly brings together firms managed by labor-intensive infrastructures. It is not profitable to create their similarities to other market representatives in economically and often technically impossible. Examples of such a monopoly include railway companies and enterprises that own water or electricity supply systems.

Natural monopoly is characteristic of National economy, where savings are caused by increasing production. In this case, competition either cannot arise or is difficult to develop. Such a monopoly includes those types of activities that produce goods for public use. One producer determines the capital required for entry.

State monopoly

It is created in accordance with the legislation of a particular country, which determines market restrictions in terms of products, forms of regulation and control over the activities of the monopolist.

Pure monopoly

A pure monopoly means that there is only one supplier of services or goods in the market. Today this is quite a rare occurrence. There are several businesses in the market competing with each other. A conglomerate includes heterogeneous entities that are mutually integrated financially.

Pure monopolies can exist well if state support, and, most likely, they are more typical for the local market. Most often, a pure monopoly arises when circumstances arise, for example, the production of many goods that have no substitutes.

Features of a pure monopoly:

• one absolute monopolist seller;
• the product is unique and has no quality analogues;
• the monopoly has every right to set any price for its goods, but the buyer is forced to take the products at set price;
• no competition;
• entry into the industry is closed.

Open and closed monopoly

In an open monopoly, one enterprise (at least for a limited period) is sole supplier products, but there is no protection from competitors. Newcomer firms that have recently entered the market with unique products are more likely to find themselves in this position.

A closed monopoly, unlike an open one, is protected from competitors in the form of a patent, legal restrictions, and copyright.

Activities of the FAS RF

In many countries there are bodies that control trade monopoly and impose certain restrictions on monopoly activities. Such bodies are called antimonopoly committees and services. In Russia there is the Federal Antimonopoly Service - a body executive power, which monitors compliance with antitrust laws and also performs the functions of adopting regulations.

Functions of the FAS RF

FAS RF exercises control over:

• Compliance with antitrust laws.
• Compliance with laws on natural monopolies.
• Compliance with advertising laws.
• In the field of placing orders for the supply of goods, works and services for federal needs.
• In the field of placing orders for the supply of goods, performance of works and services for the needs of constituent entities of the Russian Federation and municipal needs in accordance with the legislation of the Russian Federation.
• For the implementation of foreign investments in households. societies having important for the defense and security of the country.

Monopoly game

The word "monopoly" also has another meaning - it is a familiar board game where participants can rent, buy and sell their property.

At the beginning of the game, all players must place their chips on the “Forward” field and then move them around the field depending on how many points are rolled.

If a player moves, for example, to a Real Estate Plot that does not yet belong to anyone, he can purchase it from the Bank. If the player does not take it, then it can be sold at the Auction to another player who can pay more for it than others. Players with Real Estate can take rent from players entering their Plot. For Houses and Hotels this fee increases, so it is more profitable to build them on a larger number of Lots. To receive money, you can mortgage your Real Estate.

As the game progresses, you need to follow the instructions on the “Community Treasury” and “Chance” cards. It is important to maintain control, as you can go to the Prison. The goal of the game is to be the only player who doesn't go bankrupt.

You can play Monopoly online. You can find many sites where users are offered to play this game, for example,

Monopoly is the dominance of a business over a specific market for goods or services.

What is MONOPOLY - meaning, definition in simple words.

In simple words, a monopoly is when a company producing something has no competitors in the market. Thus, a given company can directly influence prices and quality without taking into account consumer opinions.

Why does monopoly arise?

Monopolies can arise as naturally, as well as due to questionable and potentially illegal business practices.

Towards formation natural monopoly results in the lack of healthy competition in a particular market sector. This can also happen in cases where a company has a patent for an exclusive product that has no analogues. An example is the Pfizer company, which for a long time had a patent for the production of Viagra ( analogues of which did not exist for a long time).

An “unnatural” monopoly arises as a clearly planned and motivated phenomenon. This occurs due to pressure on market players using various factors, both legal and not.

The government may monopolize certain areas of the economy, such as energy, resource extraction, or the provision of utilities. This provides more global control over citizens and pricing policy in the country.

Private structures do not hesitate to use dirty methods of struggle to eliminate competitors in the market. In action:

• industrial espionage;
• bases;
• influence through government agencies:
• raider attacks and so on.

The influence of a monopoly on the market.

It is worth understanding that in a healthy market system there is a range of buyers and sellers. This means that there is competition in the market, which allows prices to change depending on supply and demand. In addition, almost every product has a substitute. If one product becomes too expensive or of poor quality, there is always the opportunity to purchase a more suitable one.

Monopoly is a state of the economy in which a certain business niche is dominated by a single entity that determines prices and quantity of the product. The model is considered the least effective for the consumer, since the lack of competition causes stagnation and shortages.

Monopoly is a natural or artificial state of the market in which the means of production for one or more goods (services) are entirely in the possession of one player. A state, a private company, or an international organization can act as a monopolist. The exclusive right to extract a resource and process it, supply goods or provide services can lead to both the protection of consumer rights and their violations.

In economics, the Herfindahl Index is used to assess the real state of affairs in the country and the world. This indicator demonstrates the degree of concentration of a particular market in the hands of its specific players: the conditional value of HHI is calculated as the squared sum of the percentage of revenue from the total “pie” of each participant.

Pure monopoly, 1 participant: HHI = 100 2 =10000

2 players: HHI = 50 2 + 50 2 = 5000

10 players: HHI = 10 2 x 10 = 1000

The emergence and development of monopolism

Monopoly - what is it, what is the danger of the phenomenon? The desire to capture the market and extract maximum profit is natural for business. The first formations of this type arose in ancient times, when the rulers of cities and lands concentrated production in their hands certain goods. In Tsarist Russia, the right to produce alcoholic beverages belonged exclusively to the state (read: its leader). And China had an exclusive technology for creating silks and porcelain - no one could offer analogues.

At the moment, nothing has changed significantly: monopolies are either created artificially or formed naturally. At the same time, excessive concentration of markets in the hands of one participant is recognized as unfair competition. In reality, influencing the state of the economy is not easy, since changes require significant funds.

Types of monopolies:

1. Natural. A product is produced or a service is provided that has no analogues, and the development of an alternative requires too large a one-time investment. This, for example, has been the case for rail and air transportation for a long time: communication routes, concentrated in the hands of one owner, exclude competition.
2. Artificial. Measures to limit the number of participants are taken at the state level in order to ensure the quality standard of the product (service) and (or) consumer safety. This applies to gas transportation, nuclear waste storage, etc. The register of such monopolists is presented on the website of the FTS of Russia.
3. Open. After invention new technology and launching its commercial use, the owner of the secret temporarily becomes an exclusive participant in the relationship with the consumer. For example, if the principle of teleportation is revealed in the near future, transport companies those providing this service will be temporarily deprived of competitors.

Oligopoly

Oligopoly is a market condition in which a limited number of participants have the right to extract a resource, process it, produce a product or provide a service. A classic example is the production of passenger aircraft, spaceships, where competition is between two or three companies.

Advantages of monopolies:

1. Carrying out a unified policy. For example, in Saudi Arabia, the concentration of the oil and gas complex in the hands of the state makes it possible to influence world oil prices, solving external problems.
2. Ensuring high profits. Administrative price regulation allows the manufacturer to quickly recoup its costs and receive the greatest revenue.
3. Consumer protection. In some cases government regulation production ensures security for the least affluent sections of society.

Criticism of monopoly

Monopoly: what is it? in simple words? This is the desire of a group of people to completely take over the distribution channel, to “sit on the pipe.” At all times, opponents of excessive market concentration have expressed arguments in favor of developing competition. The more companies fight for their share of the business pie, the better it is for the consumer.

15 years ago, when cell phones were produced exclusively by high-tech giants, only the wealthiest consumers could afford them. Over the years, offers from hundreds of small companies have slowly but surely brought down the price of devices, while the level of gadgets has skyrocketed.

Monopolization of industries ensures a reduction technical progress- the manufacturer has nothing to strive for. This could be fully felt by the residents of the USSR, where there were only a few large automobile plants, and the queues for cars were scheduled for years in advance. As a result, Avtovaz produced the same vehicle models for decades, and global progress moved forward, leaving the entire industry behind.

This exposes another unpleasant part of the process - a severe shortage of goods and services. It can arise artificially or accidentally (due to poor calculation) in a way. In the absence of competition, the manufacturer himself decides how much goods to “throw away” for sale. And an oversaturation of demand will mean a decrease in profits for such a giant.

Monopolization of markets in Russia

The list of sectors of the economy in which the concentration of a large share of profit in the hands of one participant is allowed is listed in Federal Law No. 147 of 08/17/1995 - “On Natural...”. In these areas, strict government regulation is carried out through the establishment of maximum prices. The lack of competition has a negative impact on industries: this can be seen in the example of the Russian Railways corporation.

All other manifestations of monopolism are persecuted government agencies and are not acceptable. Antimonopoly authorities monitor the degree of market concentration in the hands of one player or another, and collusion between large producers of goods or service providers.

Over the 6 months of 2016, the antimonopoly services of the Voronezh region alone held violators accountable for 12 violations of the law (we are talking about using the dominant position of housing and communal services, energy companies), the total amount of fines amounted to 180 million rubles.

The main monopoly industries in the Russian Federation:

1. Central water supply and sanitation (JSC Mosvodokanal, State Unitary Enterprise Vodokanal of St. Petersburg);
2. Fuel and energy complex (OJSC Gazprom, OJSC Mosgaz and others);
3. Railway transportation (JSC Russian Railways);
4. Airport services (JSC Vnukovo Airport, JSC MASH);
5. Ports, terminals, domestic waterways;
6. Public postal and telecommunications (for example, FSUE Russian Post, OJSC Moscow City Telephone Network);
7. Disposal of radioactive waste (Federal State Unitary Enterprise “National Operator for Radioactive Waste Management”).

Monopoly game

Experience all the delights of such economic model Well-known fun for children and adults will help. A tactical game where participants “buy businesses,” upgrade them, and charge a fee for passage through their territory clearly demonstrates the danger of market monopolization. The most intelligent, prudent and successful businessman in the end remains in splendid isolation, having crushed the entire game board under himself.

Monopoly- this is a special type of market structure in which one seller is the supplier to the market of a certain product that does not have close substitutes.

Factors in the emergence of monopoly: innovations and innovations; economies of scale; exclusive ownership of the product and methods of its production; public policy.

Pure monopoly is an industry consisting of one firm that is the only seller of a product that has no substitutes. Pure monopoly is different from pure competition next: there is one seller in the industry; the product has no substitutes; entry into the industry is blocked.

Types of monopolies.

Closed monopoly represents a company that is protected by legal prohibitions (copyright institution).

Natural monopoly This is a company whose savings allow it alone to satisfy the entire market demand for a given product. As a result, the market of this product there cannot be more than one efficient producer. The state grants natural monopolies exclusive privileges (electricity and gas companies).

Open monopoly is the only supplier of this (new) product for some time and does not have any protection from competitors.

Note. In fact, all monopolies can be considered open; the classification of monopolies into three categories is quite arbitrary for many reasons.

The monopolist is a price setter and not a price taker, as was the case under conditions of pure competition. It operates alone in the market, so the demand curve of the firm and the industry coincides. For a monopolist, there is no supply curve because there is no correspondence between price and marginal income when moving along the demand line. From the set of possible prices, the monopolist seeks the most profitable price for himself, which brings him maximum income. To increase sales volume, the monopolist is forced to lower the price. This is the reason why marginal revenue (MR) becomes less than price (P) for each level of output of the product, except the first. The monopolist looks for a point on the demand line that corresponds to the volume of output that maximizes the firm's profit. He is guided by the supply rule (MR=MC), which determines the optimum of the products produced (Q 0). The price (P 0) that a company sets for its products is determined by the height of the demand curve, and not by the height (MR) at the point of optimal output K of the Cournot equilibrium (Fig. 72).

Profit maximization rule for a “pure” monopolist: P>(MR=MC)=>Pmax

Fig.72 Monopoly firm maximizes profit.

The monopolist firm receives the maximum economic profit (MR 0 LI) when the output (Q 0) has such a volume that (MR = MC), and the price (P 0) is equal to the height of the demand curve (DD). A profitable firm maximizes profits over both the long run and the short run. If the price (P 0), provided (MR = MC), in a short period of time becomes lower than average costs (P 0< АТС), то фирма-монополист будет нести убытки (рис.73).

Fig.73 Losses of a monopolist company in a short period (minimization of losses).

In this case, the company must limit itself to the volume of output corresponding to the intersection point of the MR and MC curves.

If the demand curve (DD) shifts even lower and the firm cannot compensate for average variable costs (AVC), the firm will close.

Fig.74 Closing a company.

IN long term Thanks to barriers to entry into the industry, the monopolist maintains economic profit (Fig. 72).

A pure competitor in the long run receives only normal profit, and a pure monopolist - economic profit.

If the market situation becomes unfavorable for him, he will adhere to the situation shown in Fig. 73, i.e. will produce as long as the total loss is less than fixed costs, and the price (P 0) exceeds the average variable costs(AVC).