Question 2: Definition of perfect competition market, complete monopoly market, monopolistic competition market and oligopoly market Comparison of four types of market economy.
Market type mainly refers to market competition type or monopoly type. According to the proportion of market subjects and the degree of competition in a commodity market, the market can be divided into four types: completely competitive market, completely monopolistic market, monopolistic competitive market and oligopoly market.
There are many factors that affect the market type, but the main ones are as follows:
(1) The relationship between the natural attributes of commodities and the degree of meeting people's needs.
(2) the technical complexity of producing goods.
(3) the organic composition of capital.
(4) the size of the economic scale of producing goods.
(5) The degree of social restrictions on market access.
First, a perfectly competitive market.
Perfect competitive market, also known as pure competitive market, refers to a market where competition is completely free from any obstacles and interference.
A perfectly competitive market should meet the following conditions:
(1) There are many market players, namely a large number of buyers and sellers. There are a large number of sellers, and each seller has a small share in the market. The change of individual buyer's sales volume does not affect the market price of goods; At the same time, no one among many buyers can influence the market price with the change of their own needs.
(2) The object of the market is homogeneous, that is, there is no difference between products, and the buyer has no special preference for a specific seller. In this way, different sellers can compete on an equal footing.
(3) The total production resources can flow completely freely, and each manufacturer can freely enter or exit the market according to his own wishes.
(4) Adequate information, that is, consumers fully understand the market price, performance characteristics and supply status of products; Producers are fully aware of the prices of inputs, finished products and production technologies.
The market closest to the above conditions is the agricultural product market. Therefore, the agricultural product market is generally called a perfectly competitive market.
Price formation and operation effect in a perfectly competitive market;
In a perfectly competitive market, the market price is determined by the competition between the supply and demand sides, and individual buyers and individual buyers are only the recipients of this price. In other words, at the price specified by the market, the market demand for a single product is unlimited, and the supply of products to a single buyer is also unlimited.
Perfect competition market is an ideal market type. Because in this market situation, price can give full play to its regulatory role and realize the long-term equilibrium of market price = marginal cost = average cost. From the perspective of the whole society, total supply equals total demand, and resources are optimally allocated.
However, a perfectly competitive market also has its own characteristics. For example, indiscriminate products make consumers lose their freedom of choice; The lowest average cost of each manufacturer does not necessarily make the social cost the lowest; Small-scale manufacturers have made major technological breakthroughs in physics. In the realization of economic life, perfect competition is rare. Generally speaking, competition will inevitably lead to the formation of monopoly.
Second, completely monopolize the market.
Complete monopoly market, also known as monopoly market, refers to a market completely controlled by one enterprise.
Conditions for the existence of a completely monopolized market:
(1) The seller is the only one without a branch, but there are many buyers.
(2) Due to various conditions such as technology patents and exclusive rights, other sellers cannot enter the market.
(3) The market object is unique and irreplaceable.
Although complete monopoly is a special economic situation, its existence still has its inevitability.
1, the requirement of scale economy is to become a "natural monopoly" industry.
2, the monopoly of some special resources is also easy to form a complete monopoly.
3. Franchising or forcing * * * will form a monopoly.
The formation of complete monopoly market price and its operating effect;
In a completely monopolized market, because there is only one owner, the seller can manipulate the price. The manipulated price must be higher than the actual price. Because a monopoly enterprise, as a price maker, knows that not selling more than one unit of products will lead to a price drop, which enables it to control the price by limiting production, so as to keep the price at a higher level and obtain the maximum profit.
Generally speaking, the operation of a completely monopolized market is harmful to the social economy. Because: 1, because the monopoly price is higher than the competitive price, consumers will spend more on the same use value than in the competitive market. 2. Because a completely monopolized market can't make two producers produce on the best scale, it will waste resources. 3. Monopoly manufacturers ... >>
Question 3: The difference between oligopoly market and monopolistic competition market. Monopoly competition refers to the market phenomenon that many manufacturers produce and sell similar but different products. Its characteristics are: (1) There are many enterprises but the scale is relatively small; (2) The products are similar but different from each other, so the demand curve is inclined downward; (3) Enterprises are not restricted in access, and resources can be transferred between industries; (4) There are many small buyers.
Oligopoly refers to a market state in which a few sellers (oligarchs) dominate the market. Oligopoly is a market structure that contains both monopoly and competition factors, and is closer to complete monopoly. Its remarkable feature is that a few manufacturers monopolize the market of a certain industry, and the output of these manufacturers accounts for a high proportion of the total output of the whole industry, thus controlling the product supply of this industry. The products of oligopolistic enterprises can be homogeneous or different.
The former is sometimes called pure oligopoly, while the latter is called differentiated oligopoly. There are obvious barriers to entry in oligopoly market. This is a necessary condition for a few enterprises to occupy most of the market share, and it can also be said that the oligopoly market structure exists. The most important and basic factor is that these industries have obvious economies of scale. If these industries want to accommodate a large number of enterprises, the average cost of each enterprise will be high because of its small production scale. Economies of scale make large-scale production have a strong advantage, large companies are growing, and small companies can't survive, eventually forming a situation of fierce competition among a few enterprises. For enterprises trying to enter these industries, unless they can form a large production scale and occupy a considerable market share from the beginning, the excessive average cost will make them unable to compete with the original enterprises.
Question 4: What does oligopoly mean? Oligopoly is a market structure that contains both monopoly and competition factors, and is closer to complete monopoly. Its distinctive feature is that a few manufacturers monopolize the market of a certain industry, and the output of these manufacturers accounts for a high proportion of the total output of the whole industry, thus controlling the product supply of this industry. Oligopoly is also called double monopoly or duopoly. The formation of oligopoly is first determined by the production and technical characteristics of certain products. Oligopoly industries are often industries with highly concentrated production, such as steel, automobiles and petroleum. Secondly, all kinds of exclusive measures taken by oligopolistic manufacturers to maintain their own status, as well as * * * support policies for some oligopolistic manufacturers, can also promote the formation of oligopolistic market. Interdependence is the basic feature of oligopoly market. Because the number of manufacturers is small and the market share is large, no matter what, the behavior of one manufacturer will affect the behavior of the opponent and affect the whole market. Therefore, every oligarch attaches great importance to his opponent's attitude and response to his own strategy and policy when deciding his own strategy and policy. As manufacturers, oligarchs are independent business units with independent characteristics, but their behaviors influence and depend on each other. In this way, oligopoly manufacturers can reach collusion or cooperation in various ways and forms, and can sign agreements or tacit understanding.
Question 5: Price decision-making in oligopoly market 1) Price leading system: Price decision-making is often made by large enterprises. Large enterprises that determine prices are usually called price leaders or leading enterprises; Small enterprises, like perfectly competitive enterprises, are price recipients. Including: superior price leader (the largest enterprise in the industry), efficient price leader (the enterprise with the lowest cost and the highest efficiency in the industry), barometer price leader (the enterprise that can give priority to market changes), and 2) cost addition: adding profits to the average cost according to a certain proportion. For example, if the average cost of a product is 100 yuan and the profit rate is 10%, then the price is 1 10 yuan. 1) formal agreements are signed between cartel manufacturers to control production, share the market and maintain prices.
Question 6: What is an oligopoly market? Oligopoly market, also known as oligopoly market, is a realistic mixed market between monopolistic competition and complete monopoly. Refers to the market structure in which a few enterprises control the production and sales of the whole market. These enterprises are called oligopolistic enterprises. It has the following characteristics:
1. Few manufacturers. There are only a few manufacturers in the market (when there are two manufacturers, it is called duopoly), and each manufacturer plays an important role in the market and has a considerable impact on the price of its products. 2. Interdependence. Any manufacturer must consider the reaction of competitors when making decisions, so it is neither a price maker nor a price receiver, but a price seeker. 3. The product is homogeneous or heterogeneous. Products are indistinguishable and highly interdependent. Known as a pure oligarch, it exists in industries such as steel, nylon and cement. Different products and low interdependence are called different oligarchs, which exist in automobile, heavy machinery, petroleum products, electrical appliances, cigarettes and other industries. 4. It's not easy to get in and out. It is quite difficult, even extremely difficult, for other manufacturers to enter. Because it is not only in terms of scale, capital, reputation, market, raw materials, patents, etc. It is difficult for other manufacturers to compete with the original manufacturers, and because the original manufacturers are interdependent and closely linked, it is difficult for other manufacturers not only to enter but also to quit.
Question 7: What are the characteristics of oligopoly market? The characteristics of oligopoly market are: there are only a few manufacturers in this industry; There is no difference between products and commodities; Have a certain degree of control over the price; It is quite difficult to get in and out of an industry; Closest to the steel, automobile, oil and other markets. Monopoly market has its own characteristics: this bank has only one manufacturer; Product difference is the only product, and there is no similar substitute; There is a great degree of price control, but it is often controlled; Getting in and out of this industry is difficult, almost impossible. Closest to public facilities-water and electricity. I hope this answer can help you.
Question 8: What's the big difference between products in oligopoly market? trait
1. Few manufacturers. There are only a few manufacturers in the market (when there are two manufacturers, it is called duopoly), and each manufacturer plays an important role in the market and has a considerable impact on the price of its products.
2. Interdependence. Any manufacturer must consider the reaction of competitors when making decisions, so it is neither a price maker nor a price receiver, but a price seeker.
3. The product is homogeneous or heterogeneous. Products are indistinguishable and highly interdependent. Known as a pure oligarch, it exists in industries such as steel, nylon and cement. Different products and low interdependence are called different oligarchs, which exist in automobile, heavy machinery, petroleum products, electrical appliances, cigarettes and other industries.
4. It's not easy to get in and out. It is quite difficult, even extremely difficult, for other manufacturers to enter. Because it is not only in terms of scale, capital, reputation, market, raw materials, patents, etc. It is difficult for other manufacturers to compete with the original manufacturers, and because the original manufacturers are interdependent and closely linked, it is difficult for other manufacturers not only to enter but also to quit.
The oligopoly market structure is similar to monopoly competition, which contains both monopoly factors and competition factors. But relatively speaking, it is closer to the monopoly market structure, because a few enterprises occupy a large share of the market, which makes these enterprises have quite strong monopoly power. The products of oligopolistic enterprises can be homogeneous or different. The former is sometimes called pure oligopoly, while the latter is called differentiated oligopoly.
There are obvious barriers to entry in oligopoly market. This is a necessary condition for a few enterprises to occupy most of the market share, and it can also be said that the oligopoly market structure exists. The most important and basic factor is that these industries have obvious economies of scale. If we want to accommodate a large number of enterprises in these industries, the average cost of each enterprise will be high because of its small production scale. Economies of scale make large-scale production have a strong advantage, large companies are growing, and small companies can't survive, eventually forming a situation of fierce competition among a few enterprises. For enterprises trying to enter these industries, unless they can form a large production scale and occupy a considerable market share from the beginning, the excessive average cost will make them unable to compete with the original enterprises.
cause
1. The market is naturally formed: for the pursuit of economies of scale, manufacturers are constantly expanding their production scale, and the market is relatively narrow. For example, if the total market size of an industry is 100 and the economies of scale are 30 for the manufacturers in this industry, then the market can only meet the production needs of three manufacturers under the conditions of economies of scale. This forms an oligopoly market. (Further, if the total market size can only meet the production needs of 1 manufacturer under economies of scale, the market may further form a monopoly market. )
2. Man-made (institutional) formation: the control of resources, patents and markets by manufacturers or countries is also the reason for the formation of some oligopolistic markets.
holotype
1) sudden change of demand curve: the key to understanding the sudden change of oligopoly demand curve lies in understanding the interaction of oligopoly price changes. Because the oligopoly market is divided into several oligarchs, if one oligarch raises the price and the prices of other oligarchs remain unchanged, the consumers of this oligarch will buy the goods of other oligarchs, and their demand will be greatly reduced; On the other hand, if an oligarch reduces the price, other oligarchs will follow suit and then partially offset the effect of this oligarch's price reduction, which makes the demand increase of this oligarch limited. The abrupt point of demand curve breaks the marginal income curve, which is determined by the relationship between demand curve and average income line. The marginal cost line intersects with this breakpoint, which neither affects the price nor the output.
2) market share model: the key to understanding market share is to follow the law of MR=MC and determine the distribution of market share. In the case of different costs and the same demand curve and marginal revenue line, enterprises with low marginal costs have large market share and low prices; Enterprises with high marginal costs have small market share and high prices.
3) Price-oriented mode: In the above two cases, oligopoly enterprises set their own prices. In fact, many times it is set by an oligarch, and other oligarchs are only price recipients.
4) Game theory mode: The competition among oligopolistic enterprises is actually a game, that is, all competitors fully consider the possible choices made by all parties under the existing conditions, and then make the most favorable decision for themselves.
Comprehensive advantages
Specifically, oligopoly is the objective need of mass production in modern society, and oligopoly organizations have comprehensive advantages.
In terms of fund raising, due to its strong economic strength, the risk of bankruptcy is relatively small, so ... >>
Question 9: Is the banking industry an oligopoly or a monopolistic competitive market? The existing research on the market structure of commercial banking in China shows that:
The representative view is that China's commercial banking industry belongs to oligopoly market structure;
Some scholars believe that the structure of China's commercial banking has changed to a monopolistic competition structure.