Markets Competition Monopoly Soldatova Anna DKO 1 -2

Markets. Competition. Monopoly. Soldatova Anna DKO 1 -2

In a market economy, the actions of buyers and sellers set the prices of goods and services. Ø Suppliers usually want the price that allows them to make the most money; Ø Buyers want the price that gives them the most value for the least cost.

Whenever people who are willing to sell a commodity contact people willing to buy it, a market for that commodity is created. In a perfect market there can be only one price for a given commodity: ü The lowest price which sellers will accept; ü The highest which consumers will pay.

Monopoly – is… … when in some markets there may only be one seller or a very limited number of sellers.

Types of monopolies: q Monopolies can be called natural monopolies; q Legal monopolies occur when the law of a country permits certain producers, authors and inventors a full monopoly over the sale of their own products.

In the market systems, competition answers the basic questions of … ü What ü How ü For whom ü How much Obtaining the highest profits and the best goods at the lowest price are the only motives the market system considers.

In a market economy three basic resources … 1. Land; 2. Labour; 3. Capital.

Market for labour is constantly changing: Ø Producers are in competition with one another to hire the best workers for the lower wages; Ø Workers compete with one another to get the best jobs at the highest wages.

That brings me to the end of my report. Thank you for your attention!