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Реферат Market and its Functioning





nopolist is the company which the only one producer of some good and which doesn't have any replaceable alternative of this good. Monopolies are trying to get maximum profit from every single product. Taking a unique place on market monopolies has the possibility to set higher prices. On the other hand there are some barriers which monopolies have to take in a count. First of all the rise of prices is not always leads to elasticity of demand. Secondly, by the law which is existing in countries with market economy setting the few prices for the same good is price discrimination (Chekanski, 2008). p> The competition which is going between different kinds of markets has its positives and negatives. It is an important element in mechanism of self regulation. Market is an indicator of population needs and common weal. On the other had market is signalling about future potential possibilities of productions which would form common finance weal.

On the perfect competition market the law of cost takes place. With its influence one producers are able to compete with other producers and also successfully progressing on the other hand others are bankrupting or living the market. br/>

Methods of regulation of market


On this level of evolution of market it plays the very important role. Market is providing the balanced pay ability of supply and demand. The market itself is a place with help of with the exchange of products and services if going. So when we are speaking about market regulation the main goal is to define methods with help of which we can effectively influence the sphere where the main economic relation of producer and consumer take place. The regulation of market is going with direct and indirect methods of influence on the amount and structure of sale. The important way of influence on amount and structure of demand is centralization which is provided by governments 'politic of population income. Government has the direct impact to populations 'income. All these factors have impact on the amount of solvency demand of population. p> As an indirect method of market regulation there is government regulation of prices, taxes systems and also custom-house politics which is focused on protection of interests of producers (Makarkin, 2006).



References

1. Dolan, E. (1996) Microeconomics. Translated from English at 1996. Press. p> 2. Chekanski, A. (2008) Microeconomics for students. INFRA-M

3. Makarkin, N. (2006) Microeconomics for high schools . Academic Project

4. Matveeva, T. (2007) Introduction to Microeconomics . 5 th edition GU VSHE

5. Verian, H. (1997) Microeconomics, Current View . Unity


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