Theoretical aspects of competition and monopoly: essence, features, consequences.

Abstract

Historically, there are certain market models that determine the level of its concentration. Market model depend on the factors of the number of enterprises in the industry, the barriers to entry into the industry, the possibility of setting prices. Each market can be characterized from two main positions: perfect and imperfect competition.

Feature of the market economy stipulates the necessity of the perfect (free) competition, which is the most progressive type in achieving the prosperity of the national economic system. Free competition creates the conditions for scientific and technological progress, the economic effect of price reduction, prevents the appearance of social and political problems, and so on. However, the competition can`t be the only tool in improving the country's economy. At the same time next to the competition there is monopoly markets, which are also have particular benefits and also create conditions for economic improvement.

The article deals with investigation of theoretical aspects of competitive and monopoly markets` models. Analyzed the approaches to the definition of the “competition” concept, on this base the main provisions of this concept` content were determined. The “competition” concept produces the concept of “competitiveness”, which can be used to characterize a particular product, enterprise, industry, country. On the modern level of development the national economy of Ukraine competitiveness determined as one of the country's priorities. The investigation represents the modern state and structure of the Ukrainian market. The essence and influence of a competitive and monopoly environment and the possibility of their coexistence are presented.