income of a competitive firm. Ticket. Gross, average and marginal revenues of a perfectly competitive firm Variable costs include ...

The relationship of fig. 7.3 and 7.4 is as follows: after gross income reaches its maximum, marginal income becomes negative. This pattern will help us later to understand at what part of the demand curve the monopolist sets a profit-maximizing price. Note also that in the case of a linear demand curve D, the schedule MR crosses the x-axis exactly in the middle of the distance between zero and the demand at zero price.

Let us return to the costs of the firm. We know that the average cost (AU) have at first, when the number of units of production is increased

Chapter 7

appears to be a decreasing trend. Later, however, when a certain level of output is reached and exceeded, average costs begin to rise. The dynamics of average costs, as we know, has the form (L-shaped curve (see Chapter 6, § 1). Let us depict the dynamics of the average, total (gross) and marginal costs of an imperfect competitor firm on an abstract digital example. But first, we recall once again the following designations:

TC=QxAC,(1)

i.e., gross costs are equal to the product of the quantity of goods and average costs;

MS= TS p - TS pA, (2)

i.e., marginal cost is equal to the difference between the gross cost of n units of the good and the gross cost of n-1 units of the good;

TR=QxP,(3)

i.e., gross income is equal to the product of the quantity of goods and its price;

MR= TR n - TR n .,, (4)

i.e. marginal revenue is equal to the difference between the gross revenue from the sale of n units of the product and the gross revenue from the sale of n-1 units of the product.

Columns 2, 3, 4 (Table 7.3) characterize the production conditions of the monopoly firm, and columns 5, 6, 7 - the conditions of sale.

Let us once again return to the concept of perfect competition and the equilibrium of the firm in these conditions. As you know, equilibrium occurs when MS\u003d P, and the price in conditions of perfect competition coincides with marginal revenue, therefore, we can write: MS = MR = R. For a firm to achieve full equilibrium, two conditions must be met:

1. Marginal revenue must equal marginal cost;

2. Price must equal average cost. 1 And this means:

MC=MR=P=AC 5)

sheet will be exactly the same determined

dynamics of marginal revenue (MR) and

marginal cost (MC). Why ? By-

because each additional

unit, product price adds

some amount to gross income

and at the same time -

Table 7.3 Col and ches t in t ovarov, in and dy costs, price and in and types of income

to gross costs. These are some quantities marginal revenue and marginal costs. The firm must constantly compare these two values. While the difference between MR and MS positive, the firm is expanding its production. You can draw the following analogy: as the potential difference provides the movement of electric current, so the positive difference MR and MS allows the firm to expand its output. When MR= MS, comes "peace", the equilibrium of the firm. But what price will be established in this case under "conditions of imperfect con-

Chapter 7

Market mechanism of imperfect competition

smoking? What will be the average cost (AS)"? Will the formula be followed? MS - MR = P = AC?

Let's turn to Table. 7.3. The monopolist, of course, seeks to set high unit prices. However, if he sets the price at $41, he will sell only one unit of the product, and his gross income will be only $41, and profit (41 - 24) = $17. Etc ib eul - e t about different and ca m every at gross m income m and gross mi and delay mi . Suppose that the monopolist gradually lowers the price and sets it at $35. Then he can sell, of course, more than 1 unit of the product, for example, 4 units, but this is also an insignificant amount of sales. At the same time, his gross income will be equal to $140 (35 x 4), and profit (140 - 72) = $68. Following the demand curve, the monopolist, by lowering the price, can increase sales. For example, at a price of $33, he will sell 5 units already. And although the profit per unit of goods will decrease, the total amount of profit will increase. To what extent will the monopolist lower the price in an effort to increase his profit? Obviously, up to the point where marginal revenue (MR) will be equal to the marginal cost (MS) in this case, when selling 9 units of goods.

It is in this case that the amount of profit will be maximum, i.e. (225 - 117) = $ 108. If the seller lowers the price further, for example, to $ 23, then the result will be as follows: having sold 10 units of the product, the monopolist would receive marginal income 5 dollars, and the marginal cost would be 10.5 dollars. Therefore, the sale of 10 units of goods at a price of 23 dollars would lead to a decrease in the profit of the monopolist (230 - 127.5) = 102.5.

Let's return to fig. 7.3. We do not determine the maximum profit margin "by eye", estimating at what volume of sales the difference between gross income and gross costs is maximum. Marginal revenue and marginal cost determine the slope of the gross revenue and gross cost curves at any point. Let's draw tangents to points L and B. Their equal slope means that MR= MS. It is in this case that the profit of the monopoly will be maximum.

Under conditions of imperfect competition, the equilibrium of the firm (i.e., the equality of marginal cost and marginal revenue, or MS= MR) achieved at such a volume of production, when average costs do not reach their minimum. The price is above the average cost. Perfect competition is equal MS= MR = P-AC. With imperfect competition

(MS = MR)< АС < R(6)

A profit maximizing monopolist always operates on the elastic part of the demand curve, since only when

Rice. 7.5. Monopoly equilibriumin short term

elasticity coefficient greater than one (E D P > 1), marginal revenue is positive. On the elastic part of the demand curve, a price decrease provides the monopolist with an increase in gross income. Let us turn again to the relationship in Fig. 7.3 and 7.4. At E D P=1, marginal revenue is zero, and at E 0 R< 1, marginal revenue becomes negative (see Chapter 5, § 8).

So, the maximum profit can be determined by comparing TR and TS at different volumes of output; the same result will be obtained when compared MR and MS. In other words, the maximum difference between TR and TS(maximum profit) will be observed when the equality MR and MS. Both methods of determining the maximum profit are equivalent and give the same result.

On fig. 7.5 it can be seen that the equilibrium position of the firm is determined by the point £ (the point of intersection MS and MR), from which we draw a vertical to the demand curve D. Thus, we find out the price that provides the greatest profit. This price will be set at E g The shaded rectangle shows the amount of monopoly profit.

Under perfect competition, the firm expands its production without lowering the selling price. Production increases up to the moment of equality MS and mr. The monopolist is guided by the same rule - he compares additional costs and additional income, making a decision to expand, suspend or reduce production, that is, he compares his MS and mr. And he expands production until the moment of equality MS and mr. But the volume of production in this case will be less than it would be under perfect competition, i.e. Q,< Q 2 . При совершенной конкуренции именно in point E 2 marginal cost coincides. (MS) minimum

Chapter 7

Market mechanism of imperfect competition

value of average costs (AU) and selling price level (R). If the price (R 2) set at the point E 2, there would be no monopoly profit.

Price setting by the firm at the point level E 2 would obviously be altruism. At this point MS = AC= R. But at the same time MS > MR. A rationally operating firm will by no means consider it normal that the expansion of production in the name of "public interests" will be accompanied by more additional costs for it than additional income.

Society is interested in a larger volume of production and lower costs per unit of output. With an increase in output from O to Q 2, average costs would decrease, but then, in order to sell additional products, one would either have to lower the price or increase sales promotion costs (and this is due to an increase in marketing costs). This path is not suitable for an imperfect competitor: he does not want to "spoil" his market by lowering prices. To maximize profits, the firm creates a certain deficit, which causes a price that exceeds marginal cost. Scarcity means a limitation (smaller supply) in conditions of imperfect competition compared to its volume, which would be in conditions of perfect competition. This is clear from the graph: in Fig. 7.5 shows that O,< Q 2 .

Monopoly profit in the imperfect competition model is treated as a surplus over normal profit. Monopoly profit is manifested as a result of violation of the conditions of perfect competition, as a manifestation of the monopoly factor in the market.

But how sustainable is this excess over normal profit? Obviously, much will depend on the possibilities for the influx of new firms into the industry. Under perfect competition, higher than normal profits disappear relatively quickly under the influence of an influx of new firms. E with l and same b arriere for entry and I'm in the industry before with exactly you with OK and , t about monopoly pr and true story b re t ae t at st ouch and your character t ep. In the long run, any monopoly is open, so in the long run there is a tendency for monopoly profits to disappear as new producers enter the industry. Graphically, this means that the average cost curve AC will only touch the demand curve. Something similar happens in a market structure called monopolistic competition (see Figure 7.14 below).

To measure the degree of monopoly power in economic theory is used and Lerner index(named after Abba Lerner, an English economist who proposed this indicator in the 30s of the XX century):

L= P-MC_

The greater the gap between P and MC, the greater the degree of monopoly power. Value L is between 0 and 1. Under perfect competition, when P = MS, The Lerner index will naturally be 0.

Perfect competition implies the free flow of all factors of production from industry to industry. Therefore, under conditions of perfect competition, as emphasized by the neoclassical school, there is a clear trend towards zero profit. 1 If there are obstacles to the free flow of resources, there is a monopoly profit.

Considering the marginal income of a monopoly, we said that a decrease in the price of each subsequent unit of goods means a decrease in the price of previous units of production of the monopoly firm. Can an imperfect competitor do the following: sell the first unit of a product at a price of $41, the second at a price of $39, the third at a price of $37, and so on? Then the monopolist would sell each buyer the product at the maximum price he is willing to pay.

So we came to the practice of pricing, which is called price d is Cree mi national and her: selling one and t wow t ovara are different m on t re bit spruce m or gr at ppa m on t re bit firs in different ways m price m , etc and Che m decomp and h and I'm not talking about prices boo caught decomp and h and pits and in and costs for and factory st va. The word "discrimination" here does not mean the infringement of someone's rights, but "separation".

The purpose of the price discrimination policy is to monopolist's desire to appropriate consumer surplus and thereby maximize your profits. Depending on the extent to which he succeeds, price discrimination is divided into three types: discrimination of the first, second and third degree. Let's consider each of these types in detail.

sheet, and the marginal revenue curve

falls off the demand curve for its product

Qiyu (see Figure 7.6). .

Chapter 7

Market mechanism of imperfect competition

Assume that marginal cost is constant. In first-degree price discrimination, the monopolist sells the first unit of good 0 1 at its reserved price. RU the same applies to the second one (sold by Q 2 at a price R 2), and subsequent units. In other words, the maximum of what he is willing to pay is "squeezed" out of each buyer. Then the curve MR coincides with the demand curve D, and the profit-maximizing sales volume corresponds to the point Q n , since it is at the point £ that the marginal cost curve (MS) intersects with the demand curve D(MR) discriminatory monopolist.

Therefore, the marginal revenue from the sale of an additional unit of output in each case will be equal to its price, as in conditions of perfect competition. As a result, the monopolist's profit will increase by an amount equal to consumer surplus (shaded area).

However, such a pricing policy is very rare in practice, since for its implementation, the monopolist must have amazing insight and know exactly what is the maximum price that each buyer is willing to pay for each unit of this product. We can say that perfect price discrimination is the ideal, the "blue dream" of the monopolist. Like any "blue dream", it is extremely rarely achieved. For example, a well-known lawyer, knowing well the solvency of his clientele, can assign to each such price for his services, which corresponds to the maximum amount that the client is willing to pay.

Price d is Cree mi national and I am second st epen and is a pricing policy, the essence of which is to set different prices depending on the quantity of purchased products. When buying more goods, the consumer is charged a lower price for each copy of the goods. Another example: in Moscow there are various tariffs

fa for travel on the subway, depending on the number of trips. We can say that the subway implements a policy of price discrimination of the second degree. Very often, second-degree price discrimination takes the form of various price discounts (discounts).

Price d is kr them national and I t re t ey st epen A situation in which a monopolist sells goods to different groups of buyers with different price elasticity of demand. What is happening here is not a division of demand prices into individual copies or volumes of goods, but market segmentation, that is, the division of buyers into groups depending on their purchasing power. The monopolist creates, to put it simply, "expensive" and "cheap" markets.

In the "expensive" market, demand is low elastic, which allows the monopoly to increase revenue by raising prices, and in the "cheap" market it is highly elastic, which makes it possible to increase total revenue by selling more products at lower prices (see Figure 7.7) . The most difficult problem of third-degree price discrimination is to reliably separate one market from another, i.e. "expensive" from "cheap". If this is not done, then the idea of ​​profit maximization will not be realized. After all, consumers in the "cheap" market will buy products at low prices and resell them in the "expensive" market. Let's bring specific example a reliable division of the market is sufficient: in the museum of fine arts, tickets for schoolchildren and students are always cheaper than for adult buyers. The museum administration sells cheap tickets only upon presentation of an appropriate certificate, and visually verifying the age of the buyer. Imagine a situation where enterprising schoolchildren would buy lots of cheap tickets and then resell them at the entrance to adult visitors at prices lower than those set by the museum for

Chapter 7

Market mechanism of imperfect competition

adults is impossible. After all, even if an elderly art lover uses the services of a young businessman, at the control entrance he will have to present not only a cheap ticket, but also his blooming youthful appearance.

A clear example of third-degree price discrimination can be seen in the famous novel by I. Ilf and E. Petrov “The Twelve Chairs”, when Ostap Bender was selling tickets overlooking the “Proval”: “Get tickets, citizens! Ten cents! Children and Red Army soldiers for free. Students five kopecks! Non-union members - thirty kopecks!” Third-degree price discrimination is also carried out when setting different prices for hotel services for foreigners and domestic visitors, different prices for dishes in the restaurant during the day and in the evening, etc.

Let us explain the idea of ​​price discrimination of the third degree graphically. On fig. 7.7 the markets on which the discriminating monopolist operates are shown: cases and and b. Let's assume that the marginal cost MS are the same when selling products at different prices. Curve intersection MS and MR determines the price level. Since the price elasticity in the "expensive" and "cheap" markets is different, their prices will also be different as a result of price discrimination. In the "expensive" market, the monopolist will set the price P, and the volume of sales will be Q,. In the "cheap" market, the price will be at the level R 2 and sales volume Q 2 . Gross income in all cases is shown as shaded boxes. The sum of the areas of the rectangles in cases a) and b) will be higher than the area denoting the gross income of a monopolist that does not conduct price discrimination (case c).

Thus, a discriminating monopolist must be able to reliably divide its market, focusing on different price elasticity of demand for different consumers.

Average revenue- the total amount of proceeds from the sale of products, divided either by the number of products sold, or by the number of products for which demand is presented.

If all the firm's products are sold at the same price, then the average revenue is the price at which the product is sold.

Gross income trade - an indicator characterizing the financial result trading activities and defined as the excess of revenue from the sale of goods and services over the costs of their acquisition for a certain period of time.

marginal revenue- additional income received from the sale of an additional unit of production.

Marginal revenue is equal to the change in total revenue divided by the change in the amount of product sold.

The marginal revenue ratio is the ratio of marginal revenue to sales revenue or the ratio of marginal revenue per unit of output to its price for the same period.

Marginal revenue under imperfect competition is the extra income that a firm earns by selling one additional unit of output when demand for it decreases.

marginal revenue additional sales monopolist

always less than the price.

Two can be distinguished interesting features monopolist behavior:

1) A monopolist does not always respond to an increase in demand by increasing output; instead, a monopolist can simply raise the price of its product. His reaction depends not only on the change in demand for his product, but also on how the elasticity of demand changes when the latter changes.

Because the change or shift in the marginal revenue curve depends directly on the change in the price elasticity associated with a given price. For a monopolist, a shift in the marginal revenue curve, and not in the demand curve for its product, is the decisive factor in changing output.

2) It is impossible to determine the demand curve for a monopolist, since two or more prices can be determined for the same total amount of goods. (And vice versa, two or more prices can be assigned to the same issue). The demand curve cannot be used to explain how much output the monopolist will supply to the market, since the firm sets its own prices. When demand is elastic, marginal revenue is positive.

When demand is inelastic, marginal revenue is negative.

Under imperfect competition, when prices must be lowered to sell an additional unit, marginal revenue falls.

Under perfect competition, marginal revenue will be equal to the sum of prices, since the firm operates under an infinitely elastic demand curve, i.e. it can sell any quantity of output produced at the market price.

If the firm operates under imperfect competition and the demand curve slopes downward, then in order to sell an additional unit of output, the firm must lower the price of all of its products sold. In this case, the marginal revenue will be equal to the new sum of prices minus the fall in revenue for those units of output that could previously be sold at a higher price.

Marginal revenue is the most important concept in the analysis of the company's activities. A necessary condition for achieving a profit-maximizing equilibrium is the equality of marginal revenue and marginal cost.

The demand curve faced by an individual competitive firm is perfectly elastic. The firm cannot achieve a higher price by limiting output; nor does it need a lower price to increase its sales volume.

It is obvious that the demand curve for the firm's product is at the same time an income curve. What appears as the unit price for the buyer is the unit income, or average income, for the seller. Say that the buyer must pay the price of $100. per piece, is the same as saying: the income per unit of production, or the average income received by the seller, is equal to $ 100. Average income and the price is the same, considered from different points of view.

Gross income at any level of sales can be easily determined by multiplying the price by the corresponding amount of products that the company can sell. In this case, gross income increases by a constant amount - $ 100. - with each additional sales unit. Each product sold adds exactly its price to the gross income.

Whenever a firm is contemplating how much to change output, it will also be concerned about how its income will change as a result of this shift in output. What will be the additional income from the sale of one more unit of production? marginal revenue there is an addition to gross income, that is, additional income, which is the result of the sale of one more unit of production. Gross revenue increases by a constant amount for each additional unit sold. In conditions of pure competition, the price of a good is constant for an individual firm; additional units can therefore be sold without lowering the price of the product. This means that each additional unit of sale adds exactly its own price - in this case, $100. - to gross income. And marginal revenue is an increase in gross revenue. Marginal revenue is constant under pure competition because additional units can be sold at a constant price.

32. Forms of entrepreneurial activity.
From the dictionary:

Entrepreneurial activity (entrepreneurship)- this is an initiative independent activity of citizens and their associations for the purpose of making a profit, carried out at their own peril and risk under property liability within the limits determined by the organizational and legal form of the enterprise. An enterprise (firm) is an independent economic entity created to produce products, perform work and services in order to make a profit.

In a more modern sense, entrepreneurship is the process of creating something new that has value; a process that absorbs time and effort, involving the assumption of financial, moral and social responsibility; a process that results in income and personal satisfaction achieved.

Entrepreneurial activity exists in a market economy and is carried out in a variety of organizational and economic market forms that are adequate to certain types of property.

- According to the form of ownership, enterprises can be divided into private and public. Enterprises in the private sector of the economy differ depending on whether one or more persons are their owners; from responsibility for the activities of the enterprise, the method of including individual capitals in common capital enterprises. The public sector of the economy is state (federal and subjects of the Federation) and municipal enterprises. The entrepreneurial activity of citizens (individuals) without education stands apart legal entity(meaning individual entrepreneurs who have passed state registration). An individual entrepreneur is liable for his obligations with all his property.

- private sector - these are business partnerships and societies, cooperatives and entrepreneurial activities of citizens without forming a legal entity.

- public sector: state (federal, subjects of the Federation and municipal) enterprises.

Individual entrepreneurship is a form of entrepreneurship related to small business and based on individual and family ownership. A distinction is usually made between income-generating capital and property used by the entrepreneur to satisfy personal needs. Russian legislation distinguishes between two main forms of individual entrepreneurship: individual labor activity, based only on the own work of the entrepreneur and his family members; an individual (family) private enterprise operating with the use of hired workers.

Partnerships- this is a form of entrepreneurial activity based on the association (share, share) of the property of different owners. With the help of shares, the following issues are resolved: 1) in proportion to the shares, profit is distributed among the participants of the partnership after paying taxes, allocation of funds for capital accumulation and development of production; 2) in proportion to the share, the participants of the partnership take part in resolving issues related to its activities. There is a difference between the nominal value of a share, which is equal to its value at the time the share was contributed to the partnership's capital, and the book value, which includes the amount of capital that falls on the share.

There are various forms of partnership. Among them:

- partnership with unlimited liability (general), which is formed on the basis of an agreement between its participants on joint business activities, providing for their mutual obligations and distribution of income, subject to full and joint liability

- limited partnership, in which property liability is limited only to the capital of the partnership, that is, each of its participants risks only their share

- mixed partnership (limited partnership), uniting full members who have the right to vote on the principle of unlimited (full) liability, and contributor members - on the principle of limited liability, in which their property liability extends only to the contribution to the capital of the partnership.

Joint-stock company is a form of organization of enterprises whose capital is formed as a result of the combination of many individual capitals through the issuance and sale of shares and bonds. Shareholders are shareholders of a joint-stock company, and bondholders are its creditors.

Joint stock companies (corporations) are the most common organizational and economic market forms. They are associations on a share (share) basis of equity funds of their participants (shareholders). Unlike partnerships, joint-stock companies form their capital in cash in the form of shares. The capital collected in this way is called joint-stock (corporate) and is the property of the joint-stock company as a whole, and not of its individual members. Even the founding shareholder cannot withdraw his capital from the joint-stock company. He can only sell his shares. A share is a security that testifies to the share of its owner in the share capital and gives the right to receive, in accordance with this share, a part of the income from capital (dividend). Shares are issued both registered and bearer. According to the methods of receiving dividends, shares are divided into preferred and ordinary. Preferred shares have a fixed dividend, give the right to receive it in the first place, but do not give their owners the right to vote at shareholders' meetings. Ordinary shares bring their owners dividends from the profit that remains after the payment of dividends on preferred shares, give them the right to vote.

Differ like closed and open joint-stock companies whose owners' shares are bought and sold on the stock market. The supreme governing body of a joint-stock company is the meeting of voting shareholders, which elects the governing and controlling bodies - the board of directors, the management board, the audit commission, etc. However, in practice, decisions are made by shareholders who own a controlling stake, which do not necessarily have to exceed half of the shares. The actual management of a joint-stock company is carried out by hired specialists, managers, etc.

In the economic activity of the state and individual firms, the joint-stock form of business has become the most widespread. Many corporations are world market leaders.

The joint-stock form of capital, associated with the interweaving of property rights, forms of management and economic interests of the market, contributes to the formation and development of various modern organizational forms: holding companies, investment funds, etc.

Concerns- this is a form of business organization, when legally independent companies are united into one on the basis of financial control. The ability to control is determined by the ownership of a block of shares of firms that are part of the concern. Firms are united into a concern on a functional basis. Often, a single control center is formed in the concern - a holding company that develops overall strategy, sets specific tasks for companies and monitors their implementation.

holding company, being the holder of a controlling stake in several joint-stock companies, acts in relation to them as a "parent" company, and they, in turn, refer to the latter as "subsidiaries". At the same time, this holding may be a “subsidiary” of another, more powerful one, which owns a controlling stake in its shares. Such a market mechanism is called a “participation system”, which allows for the control of huge capitals.

This is also facilitated by investment funds, which, accumulating the funds of many small investors, use them to buy shares of various companies, participate in the management of the latter, based on their own interests and the interests of investors. All this indicates that joint-stock companies, by moving and redistributing capital, contribute to their concentration and centralization, softening the properties of private appropriation of capital, its transformation in the direction of socialization. An important role here belongs to the regulatory influence of the state, which, in accordance with the law, establishes the “rules of conduct” for market entities, taking into account the interests of society.

Conglomerate is a group of legally independent companies owned by one owner. They pursue economic policies independent of each other. The set of these companies is determined by the owner's idea of ​​their profitability, the prospects of the industry, as well as its financial capabilities.

financial group These are firms that retain their legal and partly economic independence. The community of interests is manifested in the conduct of any joint operations. Initially, financial groups arose as family associations (for example, the financial empires of Fords, Rockefellers). The unification of enterprises and firms into a financial group is based on mutual participation in equity capital. The scale of this participation depends on the size of the block of shares.

State Enterprise exists in every country. It includes enterprises wholly or partly owned by the state, as well as those in which the state owns a controlling stake. The share and role of the public sector varies from country to country. The public sector of the economy usually covers low-margin industrial infrastructure facilities, energy and raw materials industries, fundamental science, environmental protection, personnel training, etc. Investments in the public sector of the economy, which make up a significant part of budget expenditures, are used to meet national needs, as well as increase the profitability of private firms.

The public sector plays a particularly important role during the crisis, when private investment in the development of factors of production is sharply reduced. By increasing investment in public sector enterprises, the government prevents economic recession and the formation of mass unemployment. This improves the structure of the economy and reduces production costs in the private sector, increasing its profitability.

A state-owned enterprise is usually a corporation in which a controlling stake is owned by the state or is on the balance sheet of the latter. State-owned enterprises, being, as a rule, large ones, are created in industries that are of particular importance for the country's economy (oil and gas, gas and oil!), or in industries that require large investments.

State-owned enterprises can be divided into 3 main groups:

1) budget enterprises- belong to the system of public administration, are part of a particular ministry, department or local government. They are subsidized by the state, the heads of enterprises are appointed by state bodies, and their staff is classified as civil servants.

2) public corporations- are the most common organizational and legal form of state enterprises in the conditions of market economy, combine in their activities the features of a state body and a commercial enterprise. The economic basis of the commercial enterprise of state corporations is equity, formed at the expense of state funds, share capital and capitalized profits. Borrowed capital is also used in the form of bonded loans, loans from banks and other financial institutions. Goods and services of state corporations are sold at regulated prices, with unprofitable enterprises subsidized by the state. Therefore, the profitability and performance indicators of public corporations are often not comparable with those of private firms.

3) mixed companies- are formed in the form of joint-stock companies and limited liability partnerships, the shares of which are owned by the state and private investors. Mixed companies operate in accordance with the law on joint-stock companies, are legal entities, enjoy greater economic independence compared to state corporations. The economic activity of mixed companies is carried out on an entrepreneurial, commercial basis, as in private firms. However, mixed companies have privileges compared to the latter. This is reflected in the provision of state subsidies and subsidies to them, guaranteed supplies of raw materials and semi-finished products from other state-owned enterprises at firmly fixed prices, a guaranteed sales market for manufactured products, a preferential regime for obtaining import licenses, export subsidies, etc. Dividends from the activities of mixed companies are received by both state and private shareholders. Although economic activity mixed companies is carried out on an entrepreneurial, commercial basis, plans for companies whose work is most important for the country's economy can be developed by their administration together with the relevant ministries and departments.

Despite the fact that state-owned enterprises have such strengths as the ability to concentrate resources, mobility in the development of basic industries, they suffer from monopolization and bureaucracy, low economic efficiency, weak competitiveness, and slow response to market demands. As for collective entrepreneurship, along with positive experience, it has some features that limit the possibilities of collective enterprises and do not guarantee the achievement of the desired economic and social results. In cooperative enterprises, the increase in wages is often not linked to its results, it reduces the accumulation fund, which slows down economic growth, and forces them to resort to benefits and state subsidies.

The variety of forms of ownership and types of entrepreneurial activity corresponds to the level of development of the productive forces, the nature of production relations. A multi-structural (mixed) socially oriented economy has proven its advantages over a mono-structural economy, since different structures coexist, interact and compete in it, and the diverse needs of people are more fully and effectively satisfied.

33. Trading capital and trading profit.
To begin with, how does this capital differ from industrial capital: Trading capital- capital operating in the sphere of commodity circulation. The formula is the same for it:

D (money spent) C (goods) D'(proceeds).

The difference lies in the fact that the commercial entrepreneur acquires commodities with his money capital not for their subsequent productive consumption, but for resale. It performs the function of converting the commodity form of capital into money. Commerce in general.

Here I have formed an amount of, say, 150,000 rubles. And I decided to become a PBOYuL (entrepreneur without forming a legal entity). With this amount, I bought all kinds of food at Metro C&C and I push it in my tent for more. And it turned out, say, already 200,000 rubles ...

It's just too arbitrary. In fact, even before the advent of industry, each merchant acted at his own peril and risk, purchasing goods with his personal savings. They bought, for example, fabrics in their city and transported them to another city where there were none. They made a profit. Now, the industrialist (even a textile factory) himself prefers to deal with the retailer, assuming that he will resell the goods at an inflated price. The factory has such volumes of production that it is not able to find a buyer on its own. Therefore, he simply sets the price taking into account the costs and the desired profit, and everything else does not concern him. The same in clever language:

“The industrial entrepreneur sells the finished product to the merchant at a price that is below the social price of production. In other words, he gives him a certain discount, which is intended to cover the cost of selling goods and ensure a profit on trading capital. The industrialist is interested in the presence of an intermediary and himself is looking for connections with him. Otherwise, he would have to create the entire commodity distribution network, up to the opening and maintenance of stores for the retail sale of goods to the population. This would require the withdrawal of part of the capital from production and its placement in trade. The truncated production capital would bring less profit. The gain from trade would be offset by the loss of gain from production.
By selling commodities in large quantities at a wholesale price to an intermediary and transferring to him a part of the profit as payment for the intermediary, the industrialist speeds up the circulation and turnover of his capital and thereby increases the mass of the profit received.

But there should not be complete chaos here. The owners of commercial capital strive, like industrialists, to obtain the same benefit from capital, regardless of where it is applied. Intersectoral competition leads to the alignment of the entire mass of surplus value into average profit. If the profit on merchant capital is less than industrial capital, then trade will turn out to be an unprofitable sphere for the investment of capital, and he will leave it in search of more profitable business. And, conversely, if the industrialist receives 10 percent of the profit on his capital, and the merchant 20 percent, then the former will try to organize the sale of his products himself.

The second source of profit on trading capital is the population itself as a buyer finished products. The trade entrepreneur is ready to use the slightest opportunity to raise prices if this increase will lead to an increase in the proceeds from the sale of goods. But buyers also understand when prices are too high. For some reason they can't do anything...

34. Wholesale and retail price.
In a free market, the relationship between the owners of goods and money develops naturally and is not regulated by anyone. The market is turning into an arena of a kind of economic democracy, in which it differs decisively from any rationed distribution of products (according to coupons and cards). All sellers and buyers participate in the free evaluation of goods, taking into account their cost and usefulness. They conduct a kind of “voting”, but instead of ballots, rubles, dollars and other money are used. In this way, the way is opened or closed for every product in the sphere of consumption. The results of this vote are reflected in market prices.

The market price is the actual price, which is determined according to the demand and supply of goods. Depending on the different conditions of purchase and sale of goods and services, different types of prices are set. They can be classified into certain main groups.

1. Taking into account the methods of regulation, the following types of prices are distinguished:

Free prices. They are formed depending on the state of the market and are established without government intervention, on the basis of a free agreement between the seller and the buyer.

Negotiated or contact prices. Counterparties establish them by mutual agreement until the moment of purchase and sale of goods. The contract may stipulate not the absolute values ​​of prices, but only the upper and lower levels of their changes. Revision of prices due to inflation and other specified circumstances is allowed.

Adjustable. For certain groups of goods, the state establishes an upper price limit, which is prohibited to exceed. In a market economy, such price management concerns vital goods and services (strategic raw materials, energy, public transport, consumer staples).

State firmly fixed prices. State bodies fix such prices in planning and other documents. Neither manufacturers nor sellers have the right to change them.

2. Depending on forms and areas of trade stand out the following types prices:

wholesale for which goods are sold in wholesale trade. In our country, at such prices, manufacturing enterprises sell their products to other enterprises or resellers.

Retail, according to which retail products are sold to consumers. Retail price - the price at which products are sold in small lots by an individual consumer. Retail prices include production and distribution costs, profits of enterprises, taxes and are formed taking into account the situation on the market. Usually retail prices are higher than wholesale prices.

Rates for services - prices (rates), determine the level of payment for utilities and household services, for the use of the telephone, radio, etc.

3. Exchange and auction prices are formed on various specific forms of markets that belong to the type of free market.

4. World market price - prices that: a) are actually established for the goods of this group on the world market and b) are recognized by organizations in charge of international trade for a certain period.

Prices vary in a number of ways. Depending on the scale of trading operations and the type of goods sold, there are: wholesale prices, according to the cat. products are sold in large quantities in conv. so-called wholesale trade; retail prices, cat. goods are sold to individual buyers in relation. small volume; tariffs (rates) - prices, according to cat. prod. payment for services, eg. for a phone, for a haircut.

38. Interest rate and credit. Interest rate.
The bank is financial institution, which focuses temporarily
free funds, provides them for temporary use in the form of
loans and mediates mutual payments between enterprises,
government agencies and individuals.
The accumulation of funds occurs in the form of deposits, they are deposits. This is
one of the functions of money is saving (not to be confused with accumulation: there
money is put in a safe and goes out of circulation, and in the bank they continue
work and grow).
Provision for temporary use, it is also lending, can
occur to firms and individuals. In the latter case, private
a person borrows to buy a refrigerator not from a neighbor, but from a bank, for
which will then pay with interest. The firm is given capital
such a percentage that it can be covered by the profit from the use
this capital, as Adam Smith wrote about. If we translate his words into
modern language, it turns out that the money taken from the bank goes to
production that generates income, and thus to repay
this income alone is sufficient, and other assets
entrepreneur can not touch.
The profit of the bank is created due to the fact that the interest it receives
from loans, always more than the interest paid to them on deposits. At
In this case, the average annual rates can vary from 0.7% (interest on
deposits, Japan, 2000) up to 320% (interest on loans, Russia, 1995).
The last figure, of course, is chaos, and in a civilized economy
can not be. Usually around 10%.
It is also useful to remember that if someone takes out a loan and has to pay it back,
for example, the amount taken plus 15%, and inflation was 10%, then he pays
not 115, but 105.
The percentage for small firms and individuals is usually much higher,
than for big business. For the amounts are different and the guarantees are also different:
a certain private trader can escape, but a company of the level of Gazprom will not go anywhere
get away.

In fact, the difference between the discount rate (the rate at which banks borrow from the Federal Reserve) and the rate of interest is the average income of banks, so during periods of increased demand for capital, when banks can afford to raise the market rate of interest, after raises the discount rate and the Fed, thereby "cooling" the market, and vice versa.

Keynes believed, following the neoclassical economists, that the current rate of interest should be at the point where the demand curve for capital corresponding to different levels of the rate of interest intersects the curve of savings from a given income at different rates of interest; however, this point is constantly shifting due to changes in the demand for capital and the supply of capital, as well as income levels.

Thus, rate of interest- the average level of the interest rate on this moment, which is formed as a result of influence from the outside (state regulation of the discount rate) and within the market (on the supply curve of demand and supply capital).

banking profit.

Banks work on a commercial basis, that is, they are focused on making a profit. It is formed because loan interest rate(the ratio of the interest paid on the loan to the amount of capital lent) is always greater than deposit interest rate(the ratio of the interest paid to the depositor to the amount of his cash contribution).

The basis of the gross (total) profit of banks is the difference between the total amount of loan interest and the total amount of deposit interest.

The gross profit of banks includes their income from all commercial transactions (including, for example, from the purchase and sale of foreign currency). Part of this profit of the bank covers its costs (payment of wages to bank employees, maintenance of premises, office expenses, etc.). The rest - net profit. This indicator is used to calculate the rate of bank profit.

Bank profit margin(P'h) is the ratio of net profit (Pch) to the bank's own (not borrowed) capital (Kc), expressed as a percentage:

P'h \u003d Pch / Ks * 100

The rate of return of banks depends on two main factors: profit rates entrepreneurial capital and interest rate on credit.

The bank's rate of return, as a rule, does not exceed the degree of enrichment of industrial and commercial capital. Only in extraordinary cases (for example, to save the enterprise from bankruptcy) does the businessman acquire loan capital at an excessively high interest rate, which exceeds the rate of capital increase. In modern conditions, the degree of enrichment of banking capital and large industrial business are sufficiently equal.

Another factor that determines the level of profitability of banks is the interest rate on loans, which shows a kind of price of borrowed funds. Depending on the state of the loan capital market and the degree of development of competition, the interest rate may fluctuate considerably. As for its minimum value, it cannot be determined. Sometimes (during an economic downturn) it can drop to a level close to zero.

Distinguish between market and average interest rates on a loan. Market rate is formed at any given moment in the loan capital market. It directly reflects the current changes in the economy and is subject to sharp fluctuations during periods of rise or fall in production. Average interest rate reflects long-term trends in the change in the percentage.

You can understand the dynamics of the interest rate if you take into account the impact on it of the frequently changing supply and demand ratio of borrowed funds. If the demand for loan capital exceeds its supply, then the scale of its use expands. When there is a lot of free money, and the demand for them is relatively small, then the interest rate will decrease.

In the second half of the XX century. in most industrialized countries there is a systematic shortage of loan capital especially in the form of medium and long term investments.

Finally, the interest rate depends on social status of the client. Loans are granted to big capital for a very favorable conditions. On the contrary, for small firms, the general population, high interest rates are set, especially on long-term loans, while solid collateral is required to obtain them.

In terms of inflation, it is important to distinguish between nominal and real interest rates. Real rate- this is the nominal (actually achieved in a given period) interest rate, calculated taking into account the level of inflation.

40. Forms of credit.
Credit is such a system of economic relations, which means the provision of tangible or monetary assets on loan on terms of repayment, urgency, material security and for a fee in the form of interest.. From a legal point of view, a loan is a right of temporary use, possession and disposal, which the full owner of the capital grants to the recipient of the loan.

A commercial loan is a loan that is provided by functioning entrepreneurs to each other in the form of commodity capital, i.e. in the form of sale of goods with deferred payment. Its object is capital expressed in the form of commodities. Its goal is to accelerate implementation.

A bank loan is a loan that banks and other financial and credit institutions provide to functioning entrepreneurs and other borrowers in the form of cash loans. Its object is money capital. A bank loan is not limited by term, amount, direction, it is more elastic, its scope is wider, security is higher.

Consumer (for individuals, for the purchase of household appliances, cars, etc.)

Agricultural (for farmers and agricultural cooperatives - special preferential percentage)

State (the borrower is the state and local authorities - these are bonds of the state loan)

International (a loan is given to the state either by another state or by an international banking organization)

Mortgage (long-term loans secured by real estate)

41.Patents and licenses.
(almost no information was found on this subject, so here I will give what was found: the definition of these two terms from the I&W textbook)