Intellectual capital price determination

Russia Market  June 28, 2017 – 12:08 am
Managing intellectual capital

To better understand the nature of imperfect competition is necessary to consider classification of market structures. As evidence, determine the shape of the market structure, consider the following: number of member firms in the industry, the nature of production, barriers to entry when entering into industry, the degree of control over price. It should be noted that in reality there is only perfect competition or just a pure monopoly. In practice, one can observe a large variety of different elements of market structure, presented in Table 2. Monopoly – a large company, a corporation combining several companies and are achieved by this definition (monopoly) position in the market of individual product or group of products.

In fact, almost impossible to find a situation would have acted when only one producer of goods that have no substitutes. And so in the use of this term is always there is a certain amount of reserve. In our country, the law firm may be considered dominant in the market of the product, if its share exceeds 50%-ing the amount established by the antimonopoly authority. The purpose of creation Monopoly – the most possible revenue by controlling production and sales of goods. One method of achieving this goal is the establishment of monopoly prices.

Source: Grid Capital Corp

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