Demand, price and marginal revenue of a monopolist. Average, gross and marginal revenue Marginal revenue is equal to the price under conditions

Relationship fig. 7.3 and 7.4 is as follows: after gross income reaches its maximum, marginal income becomes negative. This pattern will help us subsequently understand at what part of the demand curve the monopolist sets the profit-maximizing price. Please also note that in the case of a linear demand curve D, the graph M.R. intersects the x-axis exactly in the middle of the distance between zero and the quantity demanded at zero price.

Let's look again at the firm's costs. It is known that average costs (AS) have at the beginning, when the number of units of production increases

Chapter 7

there appears to be a decreasing trend. However, subsequently, when a certain level of production is achieved and exceeded, average costs begin to rise. The dynamics of average costs, as we know, have the form (A curve (see Chapter 6, § 1). Let us use an abstract digital example to depict the dynamics of average, total (gross) and marginal costs of an imperfect competitor firm. But first, let us once again recall the following designations:

TC = QxAC,(1)

that is, gross costs are equal to the product of the quantity of goods and average costs;

MS= TS p - TS pA, (2)

that is, marginal costs are equal to the difference between the gross costs of l units of goods and the gross costs of n-1 units of goods;

TR=QxP,(3)

that is, gross income is equal to the product of the quantity of goods and its price;

M.R.= TRn - TRn.,, (4)

that is, marginal revenue is equal to the difference between gross income from the sale of n units of goods and gross income from the sale of n-1 units of goods.

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

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

1. Marginal revenue must equal marginal cost;

2. Price must equal average cost. 1 Which means:

MC=MR=P=AC 5)

the sheet will be determined in exactly the same way

dynamics of marginal revenue (MR) and

marginal cost (MC). Why ? By-

because every additional

unit, tsa production adds

a certain amount to gross income

and at the same time -

Table 7.3 Number And ches T in T goods, in And yes costs, price and in And income

to gross costs. These certain quantities are marginal revenue And marginal costs. The company must compare these two values ​​at all times. While the difference between M.R. And MS positive, the firm is expanding its production. We can draw the following analogy: just as a potential difference ensures the movement of electric current, so does a positive difference M.R. And MS ensures that the company expands its production volume. When M.R.= MS,“peace” comes, the balance of the company. But what price will be established in this case under conditions of imperfect con-

Chapter 7

Imperfect competition market mechanism

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

Let's look at the table. 7.3. The monopolist, of course, seeks to set high prices per unit of output. However, if he sets the price at $41, he will only sell one unit of the product, and his gross income will be only $41, and his profit (41 - 24) = $17. Etc ib eul - uh T about different And tsa m every day at gross m income m and gross mi and delay mi . Let's assume that the monopolist gradually reduces the price and sets it at $35. Then, of course, he can sell more than 1 unit of goods, for example, 4 units, but this is also an insignificant sales volume. In this case, his gross income will be equal to $140 (35 x 4), and profit (140 - 72) = $68. Following the demand curve, the monopolist, by reducing the price, can increase sales. For example, at a price of $33, he will already sell 5 units. And although this will reduce the profit per unit of goods, the overall profit will increase. To what extent will the monopolist lower the price in an effort to increase its profits? Obviously, up to the point where marginal revenue (MR) will be equal to 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 goods, the monopolist would receive marginal revenue 5 dollars, and marginal costs would be 10.5 dollars. Consequently, selling 10 units of goods at a price of 23 dollars would lead to a decrease in the monopolist's profit (230 - 127.5) = 102.5.

Let's return to Fig. 7.3. We do not determine the maximum profit margin “by eye”, by 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 A and B. Their identical slope means that M.R.= MS. It is in this case that the profit of the monopoly will be maximum.

Under imperfect competition, the firm's equilibrium (i.e., the equality of marginal cost and marginal revenue, or MS= MR) achieved at a production volume such that average costs do not reach their minimum. The price is higher than average costs. In perfect competition there is equality MS= MR = P -AS. With imperfect competition

(MS = MR)< АС < R(6)

A monopolist seeking to maximize profit always operates on the elastic portion of the demand curve, since only when

Rice. 7.5. Monopoly equilibriumV short term

elasticity coefficient greater than unity (E D P > 1), marginal revenue is positive. In the elastic portion of the demand curve, a decrease in price 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, the marginal income is zero, and when E 0 P< 1, marginal income becomes negative (see Chapter 5, § 8).

So, the maximum profit can be determined by comparing TR And TS at different production volumes; the same result will be obtained if you compare M.R. And MS. In other words, the maximum difference between TR And TS(maximum profit) will be observed when equal M.R. And MS. Both methods for determining maximum profit are equivalent and give the same result.

In Fig. 7.5 it is clear 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 line to the demand curve D. Thus, we find out the price that ensures the greatest profit. This price will be set at E g The shaded rectangle shows the amount of monopoly profit.

Under perfect competition, a firm expands its production without reducing its selling price. Production increases until the point of equality MS And MR. The monopolist is guided by the same rule - he compares additional costs and additional income when deciding to expand, suspend or reduce production, i.e. he compares his MS And MR. And he expands production until the moment of equality MS And MR. But the volume of production will be less than it would be under perfect competition, i.e. Q,< Q 2 . При совершенной конкуренции именно V point E 2 marginal costs coincide (MS), minimum

Chapter 7

Imperfect competition market mechanism

high value of average costs (AS) and sales price level (R). If the price (P 2) settled at the point level E 2, then there would be no monopoly profit.

The firm sets the price 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 company will by no means consider it normal for the expansion of production in the name of “public interests” to be accompanied by greater additional costs for it than additional income.

Society is interested in higher production volumes 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 it would be necessary to either reduce the price or increase sales promotion costs (and this is associated with an increase in sales 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 company creates a certain shortage, which determines the price exceeding marginal costs. Scarcity means a limitation (smaller volume of supply) under conditions of imperfect competition compared to the volume that would be under conditions of perfect competition. This is clear from the graph: in Fig. 7.5 it is clear that O,< Q 2 .

Monopoly profit in the imperfect competition model is interpreted as a surplus over normal profit. Monopoly profit manifests itself 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 of the influx of new firms into the industry. Under perfect competition, above-normal profits disappear relatively quickly under the influence of the influx of new firms. E With l And same b arriers for entry And I'm in the industry before With exactly you With OK And , T o monopoly pr And true story b re T ae T at st oh And your character T er. IN long term any monopoly is open, therefore, over a long period of time, 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 further Figure 7.14).

To measure degree monopoly power in economic theory it is also used Lerner index(after Abba Lerner, an English economist who proposed this indicator in the 30s of the 20th century):

L= P-MC_

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

Perfect competition presupposes the free flow of all factors of production from industry to industry. Therefore, in conditions of perfect competition, as emphasized by the neoclassical school, the tendency towards zero profit is clearly manifested. 1 If there are obstacles to the free flow of resources, monopoly profit arises.

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

This brings us to a pricing practice called price d is Cree mi national And to her: selling one etc wow T products are different m By T re bit spruce m or gr at ppa m By T re bit oils in different ways m price m , etc And what m diff And h And I'm not talking about prices boo caught apart And h And yam And V And delays about And plant st va. The word "discrimination" here does not mean infringement of someone's rights, but "division".

The meaning of the policy of price discrimination is the 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 look at each of these types in detail.

sheet, and the marginal revenue curve co-

falls off the demand curve for its product

Tsiyu (see Fig. 7.6). .

Chapter 7

Imperfect competition market mechanism

Let us assume that marginal cost is constant. When carrying out price discrimination of the first degree, the monopolist sells the first unit of goods 0 1 at its reserved price RU the same goes for the second one (Q 2 is sold at the price R 2), and subsequent units of goods. In other words, the maximum of what he is willing to pay is “squeezed” out of each buyer. Then the curve M.R. will coincide with the demand curve D, and the profit-maximizing sales volume corresponds to point Q n, since it is at point £ that the marginal cost curve (MS) intersects the demand curve D(MR) discriminatory monopolist.

Consequently, 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 price policy is very rare in practice, since to implement it the monopolist must have amazing insight and know exactly what the maximum price that each buyer is willing to pay for each unit of a given product. We can say that perfect price discrimination is the ideal, the “blue dream” of the monopolist. Like any “blue dream”, it is achieved extremely rarely. For example, famous lawyer, knowing well the solvency of its clientele, can assign to each a price for its services that corresponds to the maximum amount that the client is willing to pay.

Price d is Cree mi national And I'm second st epen and - this is a pricing policy, the essence of which is to set different prices depending on the quantity of products purchased. When purchasing more goods, the consumer is set a lower price for each item. Another example: in Moscow there are different tariffs

Subway fares depending on the number of trips. We can say that the metro is implementing a policy of price discrimination of the second degree. Very often, price discrimination of the second degree appears in the form of various price discounts (discounts).

Price d is cr them national And I T re T oh st epeni is a situation where a monopolist sells goods to different groups of buyers with different price elasticities of demand. What happens here is not a division of demand prices into individual items or volumes of goods, but market segmentation, that is, dividing buyers into groups depending on their purchasing power. A monopolist creates, to put it simply, “expensive” and “cheap” markets.

In an “expensive” market, demand is low-elastic, which allows the monopoly to increase revenue by raising prices, and in a “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, that is, “expensive” from “cheap”. If this is not done, then the idea of ​​maximizing profits will not be realized. After all, consumers of a “cheap” market will buy products at low prices and resell them on the “expensive” market. Let us give a specific example of a fairly reliable division of the market: in a museum fine arts Tickets for schoolchildren and students are always cheaper than for adult buyers. The museum administration sells cheap tickets only upon presentation of the appropriate identification and visually verifying the age of the buyer. Imagine a situation where enterprising schoolchildren will buy up batches 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

Imperfect competition market mechanism

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

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

Let us explain the idea of ​​third degree price discrimination graphically. In Fig. Figure 7.7 shows markets in which a discriminatory monopolist operates: cases a and b. Let's assume that marginal cost MS are the same when selling products at different prices. Intersection of curves MS And M.R. determines the price level. Since the price elasticity in the “expensive” and “cheap” markets is different, the prices for them will also be different as a result of price discrimination. In an “expensive” market, the monopolist will set the price P, and the sales volume will be Q,. In a “cheap” market the price will be at the level R 2 and sales volume Q 2. Gross income in all cases is shown by shaded rectangles. The sum of the areas of the rectangles in cases a) and b) will be higher than the area indicating the gross income of the monopolist who does not discriminate on price (case c).

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

Gross income or the company’s revenue () is the product of the price of the product () and the volume of output (sales) ():

Average income firm() is the quotient of revenue divided by sales volume:

Therefore, average income is simply another name for the price of a good.

In conditions of perfect competition, the price is determined by the market, and an individual firm, occupying a negligible market share, accepts it as given (is price taker), i.e. can sell any quantity of its products at a fixed market price. Therefore, the revenue function of a perfectly competitive firm from output is linear, and the slope of the line is TR equal to the price of the product (Fig. 10.1).

Rice. 10.1. Revenue of a perfectly competitive firm

Accordingly, as price increases, the slope increases and the revenue curve shifts from position to position. And vice versa.

Marginal Revenue firm (MR) is the increase in gross income with an increase in sales by one unit:

We can say this: marginal revenue is the additional income that a firm receives from producing an additional unit of output.

If the revenue function from the issue is known (TR = f(q)), the marginal revenue function can be obtained by taking the derivative of revenue by output:

Since the price is set by the market, and an individual firm can sell any quantity of output at this price, curve market demand on the company's products is a horizontal line: at the slightest price increase by a firm, the demand for its product drops to zero, as buyers go to other sellers. It also follows that The marginal revenue of a perfectly competitive firm is equal to the price of the product:M.R.= R.

Let's see this with an example. Let the store sell beer for 10 rubles. per bottle. This means that each subsequent bottle sold increases the store’s revenue by exactly the price of the bottle. Let's draw up a table of the store's revenue and marginal income depending on the number of bottles sold (Table 10.1).

Table 10.1. Revenue and marginal revenue of a competitive firm

The demand line for a competitive firm's product is shown in Fig. 10.2.

Rice. 10.2. Equilibrium market price and demand curve for an individual firm's product

In Fig. Figure 10.2a shows the curves in the market for this product. Here hundreds of sellers and thousands of buyers collide, respectively, the quantities of supply and demand (q) are measured in many thousands, and maybe millions of units of production. As a result of the interaction of supply and demand, the equilibrium market price of the product (P*) is formed. In Fig. 10.26 we observe the position of an individual firm, which is a grain of sand on a market scale. The firm takes the market price as given and is able to sell any quantity of its products at this price. In other words, buyers can purchase any quantity of a firm's product at the equilibrium market price: the market demand curve for the product of an individual perfectly competitive firm is a horizontal line.

According to basic economic principles, if a company lowers the price of its products, then that company can sell more products. However, this will generate less profit for each additional unit sold. Marginal revenue is the increase in revenue resulting from the sale of an additional unit of output. Marginal revenue can be calculated using a simple formula: Marginal revenue = (change in total revenue)/(change in number of units sold).

Steps

Part 1

Find the quantity products sold. To calculate marginal revenue, it is necessary to find the values ​​(exact and estimated) of several quantities. First, you need to find the number of goods sold, namely one type of product in the company’s product range.

• Let's look at an example. A certain company sells three types of drinks: grape, orange and apple. In the first quarter of this year, the company sold 100 cans of grape juice, 200 of orange and 50 of apple. Find the marginal revenue for orange drink.
• Please note that in order to obtain the exact values ​​​​of the quantities you need (in this case, the quantity of goods sold), you need access to financial documents or other company reports.

1. Find the total revenue received from the sale specific type goods. If you know the unit price of an item sold, you can easily find total revenue by multiplying the quantity sold by the unit price.

   Determine the unit price that should be charged to sell an additional unit of product.

   • In tasks, such information is usually given. In real life, analysts try to determine such a price for a long time and with difficulty.

2. In our example, the company reduces the price of one can of orange drink from $2 to $1.95. For this price, the company can sell an additional unit of orange drink, bringing the total number of units sold to 201. Find the total revenue from selling the goods at the new (presumably lower) price.

   • To do this, multiply the quantity of goods sold by the price per unit.

3. In our example, the total revenue from selling 201 cans of orange drink at $1.95 per can is: 201 x 1.95 = $391.95.

   • Divide the change in total revenue by the change in quantity sold to find marginal revenue.
   • In our example, the change in the quantity of products sold: 201 – 200 = 1, so here to calculate the marginal revenue, simply subtract the old value of total revenue from the new value.

   In our example, subtract the total revenue from selling the product at $2 (per unit) from the revenue from selling the product at $1.95 (per unit): 391.95 - 400 = - $8.05.

   Since in our example the change in the quantity of products sold is 1, here you do not divide the change in total revenue by the change in the quantity of products sold. However, in a situation where a price reduction results in the sale of multiple units (rather than just one), you would have to divide the change in total revenue by the change in quantity sold.

   1. Part 2

      • In our example, the marginal revenue is -$8.05. This means that if the price is reduced and an additional unit of product is sold, the company incurs losses. Most likely, in real life the company will abandon plans to reduce prices.

   2. Compare marginal cost and marginal revenue to determine a company's profitability. For companies with an ideal price-quantity ratio, marginal revenue equals marginal cost. Following this logic, the greater the difference between total costs and total revenue, the more profitable the company.

      Companies use marginal revenue to determine the quantity to produce and the price at which the company will earn maximum revenue.

   Any company strives to produce as many products as can be sold at the best price; overproduction can lead to expenses that will not be recouped.

   Part 3

   1. Understanding different market models Marginal revenue under perfect competition.

      • In the above examples, a simplified model of the market was considered, when there is only one company on it. In real life everything is different. A company that controls the entire market for a certain type of product is called a monopoly. But in most cases, any company has competitors, which affects its pricing; In conditions of perfect competition, companies try to set minimum prices. In this case, marginal revenue, as a rule, does not change with changes in the number of products sold, since the price, which is minimal, cannot be reduced.

   2. In our example, let's assume that the company in question competes with hundreds of other companies. As a result, the price for a can of drink decreased to $0.50 (a price reduction would lead to losses, and an increase would lead to a decrease in sales and the closure of the company). In this case, the number of cans sold does not depend on the price (since it is constant), so the marginal revenue will always be $0.50. Marginal revenue at. monopolistic competition

      • In our example, let's assume that the company in question operates under conditions of monopolistic competition. If most drinks sell for $1 (per can), then the company in question might sell a can of the drink for $0.85. Let's say that the company's competitors do not know about the price reduction or cannot react to it. Similarly, consumers may not be aware of a lower priced drink and continue to purchase $1 drinks. In this case, marginal revenue tends to fall because sales are only partially determined by price (they are also determined by the behavior of consumers and competing firms).

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

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

Gross income trade - an indicator characterizing financial results 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 quantity sold.

Marginal income coefficient is the ratio of marginal income to sales revenue or the ratio of marginal income per unit of product to its price for the same period.

Marginal revenue under imperfect competition is the additional income brought to the firm by selling one additional unit of product in conditions of declining demand for it.

Marginal revenue of additional sales of a monopolist

always less than the price.

There are two interesting features monopolist behavior:

1) The monopolist does not always respond to an increase in demand by increasing output; instead, the monopolist can simply raise prices for its goods. His reaction depends not only on changes 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 that price. For a monopolist, a shift in the marginal revenue curve, rather than 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 for the same total quantity of goods two or more prices can be determined. (Conversely, two or more prices can be assigned to the same issue). The demand curve cannot be used to explain how much production a monopolist will offer 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 reduced to sell an additional unit, marginal revenue is reduced.

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

If a firm is operating under imperfect competition and the demand curve is downward sloping, then in order to sell an additional unit of output, the firm must reduce the price of all of the output it sells. In this case, marginal revenue will be equal to the new price minus the drop in revenue on those units of output that could previously have been sold at a higher price.

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

The demand curve faced by an individual competitive firm is completely elastic. The company cannot achieve more high price, limiting the volume of output; Nor does it need a lower price to increase its sales volume.

It is obvious that the demand curve for a firm's products is at the same time an income curve. What appears as the unit price to the buyer is the unit income, or average income, to the seller. Say that the buyer must pay a 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 price are one and the same thing, viewed from different points of view.

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

Whenever a firm considers how much to change its 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 selling one more unit of product? Marginal Revenue there is an addition to gross income, that is, additional income that results from the sale of one more unit of output. Gross revenue increases by a constant amount with each additional unit sold. In pure competition, the price of a product is constant for an individual firm; additional units can therefore be sold without reducing the price of the product. This means that each additional sales unit adds its exact price - in this case, $100. - to gross income. And marginal revenue is the increase in gross revenue. Marginal revenue is constant under pure competition because additional units can be sold at a constant price.

32. Shapes entrepreneurial activity.
From the dictionary:

Entrepreneurial activity (entrepreneurship)- this is the 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– this is the process of creating something new that has value; a process that consumes time and effort, involving the assumption of financial, moral and social responsibility; a process that results in income and personal satisfaction with what has been 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. Businesses in the private sector of the economy vary depending on whether they are owned by one or more individuals; from responsibility for the activities of the enterprise, the method of including individual capital in the total capital of the enterprise. The public sector of the economy is the state (federal and constituent entities of the Federation) and municipal enterprises. The entrepreneurial activity of citizens stands apart ( individuals) without education legal entity(meaning individual entrepreneurs who have passed state registration). Individual entrepreneur is liable for its obligations with all its property.

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

- public sector: state (federal, constituent entities 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 capital itself, which generates income, and property used by the entrepreneur to satisfy personal needs. IN Russian legislation there are two main forms individual entrepreneurship: individual work activity, based only on the own work of the entrepreneur and his family members; an individual (family) private enterprise operating with hired workers.

Partnerships– this is a form of entrepreneurial activity based on the association (share, shared) 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, allocating funds for capital accumulation and production development; 2) in proportion to the share, the participants of the partnership take part in resolving issues related to its activities. There is a distinction between the nominal value of a share, which is equal to its value at the time the share was contributed to the capital of the partnership, and the balance sheet value, which includes the amount of capital that falls on the share.

Exist various shapes partnership. Among them:

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

- limited liability partnership, in which property liability is limited only to the capital of the partnership, that is, each participant risks only his share

- mixed partnership (limited partnership), uniting full members who have the right to vote on the principle of unlimited (full) liability, and contributing members - on the principle of limited liability, in which their property liability extends only to their 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 issue 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 (equity) basis of the shareholder 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. The promotion represents security, indicating the share of its owner in the share capital and giving the right to receive part of the capital income (dividend) in accordance with this share. 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 first, but do not give their owners the right to vote at shareholder meetings. Ordinary shares bring dividends to their owners from the profits that remain after payment of dividends preferred shares, give them the right to vote.

Differ as closed and open joint stock companies, the shares of whose owners are bought and sold at stock market. The highest governing body of a joint stock company is the meeting of voting shareholders, which elects governing and controlling bodies - the board of directors, the board, audit commission etc. However, in practice, decisions are made by shareholders owning a controlling stake, which does 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 activities of the state and individual firms, the joint-stock form of business has become most widespread. Many corporations are world market leaders.

Shareholder form 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 unit on the basis financial control. The possibility of control is determined by the ownership of the stake in the companies included in the concern. Firms are united into a concern based on their functional characteristics. Often, a concern forms a single control center - a holding company, which develops a general strategy, sets specific tasks for the 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, relate to the latter as “subsidiaries” companies. At the same time, this holding may be a “subsidiary” of another, more powerful one, which owns a controlling stake in its shares. This market mechanism is called a “participation system”, which allows control of huge capitals.

This is also facilitated by investment funds, which, accumulating the funds of many small investors, use them to purchase shares of various companies and participate in the management of the latter, based on their interests and the interests of investors. All this indicates that joint stock companies, by moving and redistributing capital, contribute to their concentration and centralization, mitigating the properties of private appropriation of capital, and its transformation towards socialization. An important role here belongs to the regulatory influence of the state, which, in accordance with the law, establishes “rules of behavior” 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 selection of these companies is determined by the owner’s idea of ​​their profitability, the prospects of the industry, as well as his financial capabilities.

Financial group- these are companies that retain their legal and partly economic independence. A community of interests manifests itself when carrying out any joint operations. Initially, financial groups arose as family associations (for example, the financial empires of the Fords and Rockefellers). The association of enterprises and firms into a financial group is based on mutual participation in share capital. The extent of this participation depends on the size of the shareholding.

Public entrepreneurship exists in every country. It includes enterprises that are fully or partially state-owned, 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-profit industrial infrastructure facilities, energy and raw materials industries, basic science, security natural environment, personnel training, etc. Investments in the public sector of the economy, which constitute a significant part 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 in times of crisis, when private investment in the development of factors of production is sharply reduced. By increasing investment in public sector enterprises, the government is preventing economic decline and 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, are created in industries that are of particular importance to the country's economy (oil and gas, gas and oil!), or in industries that require large capital investments.

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

1) budgetary enterprises- belong to the state system administrative management, are part of a specific ministry, department or local government body. They are subsidized by the state, the heads of enterprises are appointed by government bodies, and their personnel are classified as civil servants.

2) public corporations– are the most common organizational and legal form of state-owned enterprises in the conditions market economy, combine in their activities the features of a government agency and commercial enterprise. The economic basis of the commercial enterprise of state corporations is equity formed from government funds, share capital and capitalized profits. Borrowed capital is also used in the form of bond loans, loans from banks and other financial authorities. Goods and services of state corporations are sold at regulated prices, and unprofitable enterprises are subsidized by the state. Therefore, the profitability and efficiency indicators of state-owned 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 belong to the state and private investors. Mixed companies operate in accordance with the law on joint stock companies, are legal entities and enjoy greater economic independence compared to state corporations. The economic activities of mixed companies are carried out on an entrepreneurial, commercial basis, like those of private firms. However, mixed companies have privileges compared to the latter. This is expressed in providing them with government subsidies and subsidies, guaranteed supplies of raw materials and semi-finished products from other state-owned enterprises on a firm basis fixed prices, a guaranteed sales market for manufactured products, preferential treatment for obtaining import licenses, export subsidies, etc. Dividends from the activities of mixed companies are received by both the state and private shareholders. Although economic activity mixed companies are 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 an opportunity to concentrate resources, mobility in the development of basic industries, they suffer from monopolization and bureaucracy, low economic efficiency, weak competitive ability, slow response to market demands. Concerning collective entrepreneurship, then, 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. At cooperative enterprises, the increase in wages is often not linked to its results, reducing the accumulation fund, which slows down economic growth and forces them to resort to benefits and government subsidies.

The variety of forms of ownership and types of entrepreneurial activity corresponds to the level of development of productive forces and the nature of production relations. A multi-structure (mixed) socially oriented economy has proven its advantages over a mono-structure 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 also suitable for it:

D (funds spent) T (product) D’(funds received).

The difference is that a commercial entrepreneur uses his money capital to purchase goods not for their subsequent productive consumption, but for resale. It performs the function of transforming the commodity form of capital into money. Commerce in general.

So I have a sum of, say, 150,000 rubles. And I decided to become a PBOYUL (entrepreneur without the formation of a legal entity). I used this amount to buy all sorts of food at Metro C&C and it’s already more expensive in my tent. And it turned out, let’s say, already 200,000 rubles...

But this is 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 took them to another city where there were none. They made a profit. Now, an industrialist (even a textile factory) himself prefers to deal with retailer, assuming that he will resell the goods at an inflated price. The factory has such production volumes that it is not able to find a buyer on its own. Therefore, it simply sets the price taking into account costs and the desired profit, and everything else does not concern it. The same thing in clever language:

“The industrial entrepreneur sells finished products to the merchant at a price that is lower than the social price of production. In other words, he provides him with a certain discount, which is intended to cover the costs of selling goods and ensure a profit on trading capital. The industrialist is interested in the presence of an intermediary and seeks connections with him. Otherwise, he would have to create the entire distribution network, right down to the opening and maintenance of stores retail sales goods to the population. This would require withdrawing some capital from production and placing it in trade. Reduced productive capital would bring less profit. The gains from trade would be offset by the loss of gains from production.
By selling goods in large quantities at a wholesale price to an intermediary and transferring part of the profit to him as a fee for intermediary, the industrialist accelerates the circulation and turnover of his capital and thereby increases the amount of profit received.”

But there shouldn’t be complete chaos here. Owners of commercial capital strive, like industrialists, to receive the same benefit from capital - regardless of where it is used. Intersectoral competition leads to the equalization of the entire mass of surplus value into average profit. If the profit on commercial capital is less compared to industrial capital, then trade will turn out to be an unprofitable area for investing capital and he will leave it in search of more profitable business. And, conversely, if an industrialist receives 10 percent of profit on his capital, and a merchant - 20, then the former will try to organize the sale of his products himself.

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

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

Market price is the actual price, which is determined in accordance with the supply and demand of goods. Depending on the different conditions of purchase and sale of goods and services, different types of prices are established. They can be classified into certain main groups.

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

Available 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 before the purchase and sale of goods. The contract may not stipulate absolute prices, but only the upper and lower levels of their changes. Prices may be revised due to inflation and other specified circumstances.

Adjustable. For certain groups of goods, the state sets an upper price limit, which is prohibited from being exceeded. In a market economy, such price management concerns vital goods and services (strategic raw materials, energy, public transport, consumer essential products).

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

2. Depending on forms and areas of trade The following types of prices are distinguished:

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

Retail, according to which retail trade products are sold to consumers. Retail price is the price at which products are sold in small quantities by an individual consumer. Retail prices include production and distribution costs, enterprise profits, taxes and are based on the market situation. Typically 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 telephone, radio, etc.

3. Exchange and auction prices are formed in various specific forms of markets related to the type of free market.

4. World market price - prices that: a) are actually established for goods of a given 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 trade operations and the type of goods sold, the following are distinguished: wholesale prices, cat. products are sold in large quantities in conventional units. so-called wholesale trade; retail prices, cat. goods are sold to individual buyers in relation to. small volume; tariffs (prices) - prices, according to cat. prod. payment for services, e.g. for the phone, for the haircut.

38. Interest rate and credit. Interest rate.
The bank is financial institution, which focuses temporarily
available funds, provides them for temporary use in the form
loans and mediates mutual payments between enterprises,
government agencies and individuals.
The accumulation of funds occurs in the form of deposits, also known as deposits. This
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, but in the bank it continues
work and grow).
Providing temporary use, also known as lending, can
occur in relation to companies and individuals. In the latter case, the quotient
a person takes out a loan to buy a refrigerator not from a neighbor, but from a bank, for
that he will then pay with interest. The company is provided with capital at
such a percentage that it can be covered by profit from 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
a loan is enough for this income alone, and other assets
the entrepreneur can leave it alone.
The bank's profit 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, average annual rates can range from 0.7% (interest on
deposits, Japan, 2000) up to 320% (interest on loans, Russia, 1995).
The last figure, of course, is a lawlessness, and in a civilized economy it is
can not be. Usually around 10%.
It is also useful to remember that if someone takes out a loan and must repay,
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. Because the amounts are different and the guarantees are also different:
a private trader can run away, but a company of Gazprom’s level won’t go anywhere
will get away.

In fact, the difference between the discount rate (the percentage at which banks borrow from the Federal Reserve System) and the interest rate is the average income of banks, therefore, during periods of increased demand for capital, when banks can afford to raise the market interest rate, The Fed also raises the discount rate, 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 various levels of the rate of interest intersects the curve of savings from a given income at various 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 the level of income.

Thus, interest rate- the average level of interest rates at the moment, formed as a result of external influences (state regulation of the discount rate) and inside the market (on the supply and demand curve for capital).

Banking profit.

Banks operate 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 for the loan to the amount of capital lent) is always greater deposit interest rate(the ratio of the interest paid to the depositor to the amount of his cash deposit).

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 currency). Part of this bank profit covers its costs (payment wages bank employees, maintenance of premises, office expenses, etc.). The remaining part is net profit. This indicator is used to calculate the rate of bank profit.

Bank profit margin(P’ch) is the ratio of net profit (Pch) to the bank’s own (non-borrowed) capital (Kc), expressed as a percentage:

P'ch = Pch / Ks * 100

Banks' profit margin depends on two main factors: profit margins entrepreneurial capital and interest rate on loan.

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

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 within significant limits. As for its minimum value, it cannot be determined. Sometimes (during an economic downturn) it can drop to levels close to zero.

There are market and average loan interest rates. Market rate develops at any given moment in the loan capital market. It directly reflects current changes in the economy and is subject to sharp fluctuations during periods of growth or decline in production. Average interest rate reflects long-term trends in changes in interest rates.

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

In the second half of the 20th century. mostly industrial developed countries there is a systematic a lack of loan capital , especially in the form of medium- and long-term investments.

Finally, the interest rate depends on social status client. Loans are provided to large capital companies on very favorable terms. On the contrary, for small firms and the general population, high interest rates are set, especially on long-term loans, and solid collateral is required to obtain them.

In an inflationary environment, 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 inflation rate.

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

Commercial loan is a loan that operating entrepreneurs provide to each other in the form of commodity capital, i.e. in the form of sales of goods with deferred payment. Its object is capital, expressed in commodity form. Its goal is to speed up implementation.

A bank loan is a loan that banks and other financial institutions provide to operating 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, and its security is higher.

Consumer (for individuals, for purchase household appliances, car, etc.)

Agricultural (farmers and agricultural cooperatives - special preferential interest)

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

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

Mortgage (long-term loans secured by real estate)

41.Patents and licenses.
(it was almost impossible to find information on this issue, so here I will give what was found: the definition of these two terms from the I&V textbook)