project monopol

8/13/2019 PROJECT Monopol

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Table of Contents

Table of Contents.................................................................................................................2What is Monopoly?..............................................................................................................3

Classification of monopolies................................................................................................4

1)Collusion between big companies................................................................................42)Natual monopoly.........................................................................................................!

3)"egal monopoly............................................................................................................!

4)Technological monopoly..............................................................................................#

!)Ta$ema% monopoly...................................................................................................##)Monopoly e&ecise$ though contol of inputs.............................................................#

Monopoly 'owe..................................................................................................................(

Monopolies in the omanian economy ..............................................................................*+ibliogaphy......................................................................................................................1!

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What is Monopoly?

Monopoly is a ma%et stuctue with the following

chaacteistics, ma%et thee is one company that sells a uni-ue

po$uct which is potecte$ fom ials enteing the ma%et. This is

an i$eal stuctue. /n eal wol$ con$itions can only be

appo&imate$ monopoly because,1) aely can fin$ a ma%et whee one company opeates0

2) aely can i$entify a po$uct fo which thee ae no

substitutes an$

3) no fim is pefectly potecte$ fom enty of othe

competitos in the ma%et.

o e&ample0 owneship of a ae mineal $eposit is a petty

goo$ potection0 but thee is the possibility of $iscoeing othe

$eposits. en when monopoly is potecte$ by law the authoities$o not allow ial fims to ente the ma%et ae li%ely to change

the law.

lthough thee is a ma%et that featues fully meet the

ma%et stuctue of monopoly0 the monopoly use of a fomal mo$el

allows un$estan$ing the behaio of fims opeating in such

ma%ets.

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Classification of monopolies

The emegence of monopolies is base$ on seeal easons.

5owee0 it ta%es many foms an$ hae $iffeent oles an$

functions in a national economy. Theefoe the nee$ aises fom

the ey beginning to ma%e thei classification0 ta%ing the fom of

monopolies an$ the main citeia that gie ise to causes an$

contibuting to thei $eelopment nee$s. 5ighlighting the main

causes of the emegence an$ maintenance of monopolies in a

ma%et economy can actually constitute an$ a fist e&planation ofthei occuence0 aeas in which they $eelop0 an$ the foms it

ta%es.

/n ma%et economies monopolies ta%e $iffeent foms0 such

as,

1)Collusion between big companies Concentation of po$uction an$ accumulation of capital

though puchases an$ meges an$ companies an$ fims onhoi6ontal an$ etical line esults in e$ucing the numbe of

competitos. mong these ae moe easily achiee$ secet $eal to

shae ma%ets0 setting po$uction -uotas an$ si6e of the selling

pice of po$ucts on the ma%et.

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72 71

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'1

CTM pe temen lung

C Mg

Ceee

8enit

maginal

'

e9

Cantitate

2)Natual

monopoly Theeconomy

of scale in

cetain aeas

contibute to lowe

po$uction costs to an

e&tent such that othe

fims with a lowe

olume of actiity coul$ not each such a

pefomance. Meanwhile0 in cetain aeas o

economically o technologically not possible e&istence of seeal

competing companies because

it woul$ mean spen$ing too much inestment. Thee ae classic

e&amples of electicity $istibution netwo%s0 gas an$ wate0

$istict heating netwo%s0 iigation systems0 the netwo% of

ailways. :oubling o tipling these netwo%s only wish that theewoul$ be competitos in economically iational0 since on the one

han$0 woul$ e-uie a $oubling o tipling the olume of

inestment0 on the othe han$0 between these entepises hae

coul$ achiee collusion to fi& pices an$0 in fact0 the poblem of

estoing competition woul$ not sole eeything.

3)"egal monopoly Thee ae cetain po$ucts o sectos of stategic inteest

;national $efense) an$ the public inteest to be sub


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manufactue an$ $istibution of phamaceutical $ugs o

substances ;mophine) po$uction an$ ma%eting of tobacco an$

alcohol0 an$ po$uction an$ use of =anium0 the a$ioactie

isotopes0 the po$uction of money0 stamps0 etc.

4)Technological monopoly Mostly fom owneship of inention patents an$ copyight0

which gies the inento o autho e&clusie contol oe new

po$uct o new technology oe the whole peio$ pescibe$ by

law ;1! to 1( yeas fo patents) lso any manufactue new

po$uct sol$ on the ma%et has a peio$ of monopoly position0

which will ta%e time until othe companies will come on the

ma%et with simila po$ucts o substitutable. /n contempoaycon$itions0 technological monopoly is wi$espea$ because0 on the

one han$0 systems in which the eseach an$ innoation0 an$ on the

othe han$0 concens to stimulate an$ e&pan$ eseach an$

$eelopment0 the main geneato of the innoation pocess.

!)Ta$ema% monopoly To$ay inclu$es a lage numbe of po$ucts of mo$en

in$usty. 'o$uct image ceate$ by the oiginal mo$els fom time

to time enewe$0 an$ guaantee po$uct -uality ae elate$ to

ta$ema% that is uni-ue0 unepeatable an$ ecogni6e$ as an

inestment in a$etising pesistently by the seiousness an$

pomptness with which customes ae see$.

#)Monopoly e&ecise$ though contol of inputs >uch as enegy0 some mineal bau&ite0 coppe0 tin0 etc.

mainly $ue to thei aity an$ impotance of owneship of $eposits.

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Monopoly 'owe

ll po$ucts hae a substitute moe o less goo$. /f any

company comes to monopoli6e wheat ma%et0 po$uces woul$continue to suffe competition fom ye0 baley0 etc.. /f / sai$ thee

is no fee ma%et with competition0 it must be sai$ at once that

thee is no pue monopoly. /n eality0 it is moe coect to spea% of

monopoly powe to efe to lage o smalle $egee in which a

company can influence pice o po$uct. Monopoly powe

$epen$s on the $iffeence between po$uct pice an$ maginal

cost. When pice an$ maginal cost ae e-ual0 the ma%et is in a

situation of fee competition an$ monopoly powe is 6eo.

Monopoly powe is ma&imum when maginal cost is 6eo, at thatpoint now sets a positie pice fo a goo$0 that if thee was fee

competition woul$ hae been fee. nothe facto influencing the

powe monopoly is the elasticity of $eman$, a lowe elasticity

geate powe/f an asset whose monopoli6ation claim is totally

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igi$0 coul$ set any pice now. The e&istence of eplacement goo$s

is moe elastic $eman$ an$ e$uces monopoly powe.

Companies can thus incease thei monopoly powe o $eceasing

the po$uct substitutability o0 in othe wo$s0 it $ifeientiin$u

fom those of competitos. 'o$uct $iffeentiation is achiee$though small changes in $esign0 supplements0 pac%aging0

financing an$ especially though a$etising techni-ues. The esult

is a %in$ of monopoly ma%et that is calle$ competence.

Monopolies in the omanian economy

/n ou county0 poblems of monopoly ae of a paticula

place. n the one han$0 became necessay to $efine the types of

monopoly peailing in omanian economy to e&pan$ awaeness

an$ appeciation of them. n the othe han$0 is full of geat

%nowle$ge econsi$eation of monopoly0 monopolistic competition

an$ ma%et mechanisms functioning mo$en economy. s fo

many people these poblems ae new0 thei theoetical claification

has become necessay fo seeal easons,

To emoe misconceptions0 wi$espea$ in ou county in thelast fou $eca$es by Ma&ist economic liteatue0 with

simplifying things0 phenomena often pesente$ in a biase$

way on the one han$0 citics of the stuctue an$ functioning

ma%et economy an$ on the othe han$0 the apology fo the

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socialist economy0 in both cases ma%ing use of concealing

the tue state of affais an$ facts.

To achiee the ob


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of political pinciples olitional0 an$ centalist

a$ministatie contolA

concentation of po$uction in lage an$ ey lage units

towa$s inestment an$ mege an$ consoli$ation pocess of

small unitsA monitoing an$ caying out the speciali6e$ units of the

whole in$usty by eliminating $uplication in manufactuing

oeall an$ by concentating thei po$uction at a single

manufactue system that coespon$e$ to the centali6e$

management of an a$ministatie pinciple.

/f the ma%et economy can not spea% of a monopoly0 but

athe monopolistic elements that aise an$ $eelop a geneal fun$

competition in omania0 centali6e$ economy was fome$ an$consoli$ate$ a compehensie monopoly0 fom which they wee

emoe$ almost all the elements geneating competition. nly with

the a$ent an$ $eelopment of piate popety begins the geneal

fun$ of the monopoly system0 to appea an$ $eelop competitie

system.

What ae the elements of monopoly in omania that will

continue to hin$e the competitie elationships in taining?

Maintaining state monopoly as the owne an$ a$ministatoof the ital esouces of the economy by autonomous mining secto

;oil0 gas0 electicity)0 in manufactuing0 tanspot an$

telecommunications sectos an$ maintaining >tate capital in the

company0 %eeping the state a$ministation of eseach0 e$ucation0

health0 also maintaining state owneship of a fifth of the best an$

most fetile agicultual lan$0 foests0 iigation systems0 the state

hol$ing of mao this system will be contolle$ by the main inputs that

will not stimulate the economy0 but will continue to annihilate

competition.

Maintaining coopeatie foms of ogani6ation typical

monopolist in the fiel$ of small in$usties0 han$icaft wo%shops

an$ in$ustial goo$s in ual aeas of sales ;sales coopeaties).

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:espite its status to semistate coopeatie system in this secto0

ogani6ational foms0 $iectly an$ in$iectly contols the oeall

actiity of the components an$0 aboe all0 the pices an$ taiffs0 the

manufactue0 assotment0 -uality po$ucts an$ seices0 etc.

pecisely because the system is monopolistic ogani6ation. =n$ethe label of autonomy0 the coopeatie is not submall po$uction of in$ustial goo$s0 along

with the fam can help eie the ma%et economy0 with thecon$ition of $emonopoli6ing this secto.

The e&istence in ou county an in$ustial system with a high

concentation of po$uction0 that the sole motiation of the

absolute supeioity of economies of scale. +y some estimates0

omania is in tems of si6e in$ustial units in secon$ in the wol$

afte C6echosloa%ia. +ut to chaactei6e the $egee of

monopoli6ation0 not the si6e of the business itself is impotant0 but

also lage companies that only manage to po$uce a lage numbeof copies of the same po$uct0 so that $uplication is eliminate$ o0

othe wo$s0 thee is only one manufactue o to the whole

county o the geogaphical aeas as lage0 which e&clu$es0 as a

ule0 in pactice0 competition between po$uces. o e&ample0 in

many in$usties ;machine buil$ing0 electical0 electonics0

chemisty0 metallugy0 etc.). utput is poi$e$ by only one

manufactue o a small numbe of po$uces by eason of the

minimum batch si6e0 specialty insuance0 the $eelopment of

mo$en manufactuing technologies inoling a cetain olume ofpo$uction0 etc. en in aeas of buil$ing mateials0 whee $eman$

is lage an$ $iese an$ tanspot of aw mateials an$ po$ucts is

e&pensie thee0 fe-uently0 uni-ue po$uces thoughout the

county. /n this connection may be mentione$ po$ucts, '8C

wallpape0 ceamic tiles gla6e$0 enamele$ cast ion ats0 non

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feous metal fittings fo plumbing an$ inteio sheet bathtubs0

$ain pipes an$ sanitay enamele$ cast ion0 etc...

Concentation of po$uction on a lage numbe of po$ucts

usually singula po$uces e&pan$e$ scale so lage as this pactice

is pefectly inscibe$ on the one han$0 centali6e$ managementsystem of a$ministatie0 on the othe han$0 implementation of the

pinciple of speciali6ation of in$ustial units with %nown economic

a$antages fo the manufactue. To$ay this state of things became

incompatible with the tansition to ma%et economy as geneatos

without competition0 ma%et mechanisms can not opeate o

opeates $efome$. The anomaly comes fom the fact that the

manufactue %eeps the $ictatoship of po$uctie an$

unpo$uctie consume0 monopolistic company e&ecisingcomplete contol of po$uct pice an$ po$uction olume to its

a$antage an$ the $etiment of consumes an$ society as a whole.

n ignoance of this eality o an un$eestimate of this

phenomenon has ceate$ an$ continues to ceate geat $ifficulties

in implementing measues to tansition to a ma%et economy. o

e&ample0 the shift to pice libeali6ation0 un$e the peailing

monopoly po$uces in almost all economic sectos an$ the geneal

con$itions of a shotage of po$ucts0 tiggee$ an anachic inceaseof $iscetionay pices0 wosening economic cisis0 the $ange of

compomise0 the ey pocess of tansition to ma%et economy in

the face of many people.

The e&istence of the geneal shotage of po$ucts an$

complete libeali6ation of picing is faoable con$itions

emphasi6e the behaio of monopolistic fims po$ucing them

acting on thei own an$ without any estictions ceate$ by public

contol. Ta%ing a$antage of the chonic gap between supply an$

$eman$0 the latte being much lage companies whethe o notthe only manufactue set pices an$ %eep po$uction incease$ at

a low leel so that they coul$ coe all costs an$ to obtain an$ a

supepofit. Ten$ to incease pices an$ maintain low po$uction

olume is limite$0 howee0 $ecease$ puchasing powe of

people. /f thee wee ey insistent wage $eman$s woul$ ga$ually

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each a balance between supply an$ $eman$0 ising pices poi$e$

by po$uces an$ monopolistic actions woul$ mitigate. 5owee0

satisfying the $eman$s to incease wages by in$e&ing0 maintaining

the gap between supply an$ $eman$0 along with monetay inflation

an$ an aggessie monopolist peseing behaio themanufactue to the consume.

/n shot0 these ae the main causes an$ conse-uences of

monopoly0 an$ the foms it ta%es this phenomenon in ma%et

economies0 as in that of ou countyDs economy.

/n economic theoy an$ pactice ae issue$ numeous

appoaches an$ solutions on the line $emonopoli6ation o

establishment of competition. /t is often ague$ that monopoli6e

pocess must accompany the piati6ation. +ut these two0piati6ation an$ $emonopoli6ation must not be confuse$.

'iati6ation ta%es place only $ismantling the state monopoly on

the popety. Monopoly manufactue is maintaine$ an$ poi$e$

on piate popety. uthe steps inole the establishment of

competition outsi$e of the piati6ation0 steps which ae as

complicate$ an$ e&pensie. /tDs mainly thee ma


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The secon$ categoy efes to the a$option action cuent

antimonopoly policy towa$s the impot of simila po$ucts

manufactue$ by local monopolies. Though an actie policy of

impot competition may be cancele$0 in pactice0 fims ten$ also

impose monopoly pices an$ to manipulate the leel an$ -uality ofpo$uction.

The thi$ categoy of actions is the $eelopment of

antimonopoly legislation an$ the potection of competitie actiity.

:afting of such legislation an$ an effectie mechanism fo its

enfocement is of paticula impotance fo the cuent phase of the

omanian economy. Nomatie $ocuments shoul$ set the limit of

pusuing economic actiities such as fomal o infomal a$option

aangements0 the fomation of associations an$ ogani6ationsystems0 etc. o e&ample0 ageements between business units to

fom ogani6ational systems base$ on pinciples of hol$ing

companies0 although seem ational in tems of economics an$

management0 in tems of competitie economy they can be

countepo$uctie. Theefoe0 it must be state$ in the egulations

that limit famewo% in which economic agents hae the ight to

act an$ associate fo not contaene the pinciples of competition.

Consi$e0 biefly0 still fim monopolistic behaio in the ma%etmechanism0 namely0 how it sets its selling pice0 which functions

an$ how these functions ae use$ in the analysis of pice an$ pofit

an$ is the efficiency of monopoly compae$ with that of fee

competition.

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+ibliogaphy

F. . ois0 conomia politica0 $. 5umanitas0

+ucuesti0 1BB4

conomia politica0 >0 $. conomica0 +ucuesti0

1BB!

M. Flais0 Micoeconomie0 $. conomica0 'ais0 1B*3

Fheasim0 Micoeconomie0 ol. 20 $. conomica0

+ucuesti0 1BB4. +ena$ Fueien0 conomia neoclasica0 $.

5umanitas0 +ucuesti 0 1BB30

C. Fogoneata0 . Fogoneata0 conomie politica0 Teoia

mico si macoeconomica0 'olitici economice0 $.

:i$actica si 'e$agogica0 ..+ucuesti 0 1BB!

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G2neconcuentialeE2G2monopolul.htm

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