Конкуренция

Competition is a struggle between economic entities for the most efficient use of production factors. Competition - competition of market economy participants for the best conditions for the purchase and sale of goods. I believe that these definitions fully reveal the concept of competition.

Competition is divided into types:

1. Perfect competition, free or pure-an economic model that occurs only in an idealized market, in this model, neither the producer nor the consumer can influence the cost of the product, but they form it by their contribution of supply and demand.

Signs of perfect competition:

- an infinite number of equal sellers and buyers

- uniformity and divisibility of products sold

- no barriers to entry or exit from the market

- high mobility of production factors

- equal and full access of all participants to information (product prices)

All signs must be observed, and if there is not even one sign, this will be an imperfect competition.

2. Imperfect competition - an economic model in which individual producers have the ability to control the cost of the products they produce. In the modern economy, this model is considered the most common.

Signs of imperfect competition:

- presence of entry barriers to the industry

- product differentiation

- the main share of sales is accounted for by one or more leading manufacturers;

- ability to control fully or partially the price of your products.

In conditions of imperfect competition, the equilibrium of the firm will occur when the average cost will not reach its minimum level, and the price will be higher than the average cost.

Types of markets of imperfect competition: the Number of producers, the Degree of product differentiation, the Degree of price control, Barriers to entry, Monopolistic competition, a Large number of firms, a Variety of products. There are many examples of markets with imperfect competition. For example, the soda market, which is headed by Coca Cola and Pepsi.

There are such types of imperfect competition as monopoly, oligopoly, and monopolistic competition.

Types of imperfect competition:

Monopolistic competition is a type of market structure consisting of many small firms that produce differentiated products, and characterized by free entry and exit from the market. The products of these firms are close, but not completely interchangeable, i.e. each of the many small firms produces a product slightly different from the products of its competitors.

An oligopoly is a type of market of imperfect competition, characterized by the action of several sellers in the market, and the emergence of new ones is difficult or impossible.

Pure monopoly - the organization of the market in which there is a single seller of a product, and this product is not a close substitute in other industries. Along with oligopoly and monopolistic competition, monopoly is an example of imperfect competition.

Competition in the economy performs a number of functions:

- identifies and sets the market value of the product;

- reduces specific work to socially necessary;

- assists in the alignment of individual costs and profits depending on productivity and efficiency of production management.

Through competition, not only factors of production are distributed, but also income is distributed in accordance with the contribution and efficiency of economic entities. Efficient use of resources allows producers to earn high revenues; if resources are used inefficiently, they incur losses and can be forced out of the market.

Competition is competition between market participants for the best conditions for the production and sale of goods. Indeed, competition is the struggle of manufacturers for the "wallet" of the buyer. In order to win this fight, the manufacturer improves the quality of products and sets favorable prices for their products, introducing technical advances in production and reducing costs. Such competitive results increase the overall well-being and well-being of the country.

In conclusion, it can be noted that competition plays an important role in the economy, and also makes enterprises progress.