B. The market mechanism and its elements

Section II. MICROECONOMICS

Chapter 8. ESSENCE AND INFRASTRUCTURE OF THE MARKET

Essence and functions of the market. Market mechanism

Commodity circulation is inextricably linked with the market. The market is a category of commodity production and exchange.

In modern economic literature, there are several definitions of the market:

- the market is an exchange organized according to the laws of commodity production and circulation, a set of relations of commodity exchange;

- the market is a mechanism for the interaction of buyers and sellers (in other words, the relationship of supply and demand);

The market is a sphere of exchange within the country and between countries, connecting producers and consumers of products.

The market is a set of socio-economic relations in the sphere of exchange, through which the sale of goods and the final recognition of the social nature of the labor contained in them are carried out. At the same time, money is a specific social form of recognition and accounting for the costs of social labor of commodity producers in the market.

This definition focuses on two such aspects: firstly, the market is not only a place and a process of buying and selling, i.e. exchange of goods for money or goods for goods. The market is at the same time a system of relations between the seller and the buyer, the producer and the consumer, arising from the purchase and sale of goods. Such relations, being “invisible” to the eyes, are of a public (social) nature and therefore are called socio-economic.

Secondly, the usefulness or value of the work of the producer of a commodity is finally recognized only when the commodity is bought by someone and money is paid for it (or it is exchanged for some other commodity). If this does not happen, then such a commodity and the labor spent on its production turn out to be unnecessary and useless.

It follows that the market is a sphere of exchange relations between people associated with the exchange of goods for money and money for goods, with the recognition of the labor expended on creating a thing (service).

The market is not only a general economic category, as a result of the natural and historical development of human society. It also includes historical, national, cultural, religious, psychological features of the development of peoples who have absorbed all the richness of the centuries-old traditions of the joint organization of cultural and economic life. This determines the features of the modern market and the market system in various countries. The market has taken place in all civilizations, but its role in them varies considerably.

The market is a way of linking isolated commodity producers on the basis of the social division of labor. This manifests itself in the following:

1) the market informs commodity owners about the state of affairs in all branches and spheres of economic life;

2) it determines the social utility of goods;

3) indicates the direction and nature of the change in production programs.

The essence of the market is revealed in its main functions. Function is a means of manifestation of the essence of the phenomenon. This is an objective, stable and unambiguous property of an economic process or phenomenon, a way of manifesting its socio-economic purpose.

The functions of the market are:

1. Pricing - determination of the market value of goods and services and their selling prices;

2. Reproductive - ensuring the continuity of the reproduction process (in particular, the connection between production and consumption), the formation of the integrity of the national economic system and its links with other national economies on a global scale;

3. Stimulating - encouraging producers of goods and services to reduce individual costs compared to socially necessary, increasing the social utility of goods and services, their quality and consumer properties. The stimulating function manifests itself to a decisive extent as a result of intra-industry and inter-industry competition, as well as changes in the relationship between supply and demand;

4. Regulatory - influencing the ratio between various spheres and sectors of the economy, bringing into line effective demand and supply, accumulation and consumption, and other proportions;

5. Controlling the rationality of production by the price level;

6. Competitive - forming relations of rivalry between producers of goods and services within individual countries and the world economy;

7. Sanitizing - ensuring the cleansing of the economic system from inefficient and unviable enterprises through the mechanism of competition;

8. Information. Through constantly changing prices, interest rates on credit, the market provides production participants with objective information about the socially necessary quantity, assortment and quality of those goods and services that are supplied to the market. Spontaneously flowing operations turn the market into a giant computer that collects and processes generalized data throughout the economic space that it covers. This allows each company to constantly check its own production with changing market conditions.

9. Communicative. The essence of the communicative function of the market is that the market, through such components of the market mechanism as needs, interests, supply and demand, provides direct and inverse relationships between production and consumption; coordination of economic interests of economic entities - producers-sellers and consumers-buyers, owners of free funds and persons in need of these funds, employees and employers; bringing the volume and structure of production in line with the volume and structure of effective demand; exchange of results of activities of economic entities in conditions of deep social division of labor; mutually beneficial technological and economic ties between the participants in social production, satisfaction of their needs in various types of goods.

10. The appraisal function consists in comparing individual production costs with socially necessary ones, which determine the market value of products. The latter, being adjusted for the ratio of supply and demand, is the market price. It is the market value that determines the social significance of the goods and services produced and the labor expended on their production.

11. The distributive function provides distributive processes mediated by exchange on the principles of equivalence, namely: the distribution of economic (material, labor, monetary and financial) resources between commodity producers-sellers in sectoral and territorial contexts; the realization of the produced goods, bringing them to specific consumers-buyers, i.e. commodity circulation in accordance with the structure and dynamics of solvent demand; formation of incomes of economic subjects of the market (profit, wages, etc.), their subsequent distribution and redistribution in the process of exchanging the results of their activities.

12. Mediation. Economically isolated producers in the conditions of social division of labor must find each other and exchange the results of their activities. Without a market, it is practically impossible to determine how mutually beneficial this or that technological and economic connection between specific participants in social production is. In a normal market economy with sufficiently developed competition, the consumer has the opportunity to choose the optimal supplier (in terms of product quality, price, delivery time, after-sales service and other parameters). At the same time, the seller is given the opportunity to choose the most suitable buyer.

The implementation of all the functions of the market in their unity determines its role in the economic system of society.

As a functioning system, the market presupposes the existence of an appropriate mechanism (organization).

Economic mechanism - a set of organizational structures and specific forms and methods of management; as well as legal norms, with the help of which economic laws operating in specific conditions are implemented; reproduction process. The market mechanism of management is a system of methods of regulation and means of influencing economic processes, in which commodity-money relations are developed, all forms of ownership and types of entrepreneurship have equal opportunities for development, and the role of the state in the economy is limited.

The market mechanism is a form of economic organization in which consumers and producers interact through the market (and the movement of prices on it) on the basis of competition between them in order to solve the three main tasks of a market economy: what to produce, how to produce, for whom to produce. At the same time, the main task remains: how profitable all this is for entrepreneurs.

The formation of a market economy mechanism involves the implementation of certain business conditions that ensure market relations. These include:

1) the necessary variety of forms of ownership and forms of management;

2) freedom of pricing;

3) ensuring freedom of choice;

4) freedom of entrepreneurial activity;

5) the fact of the presence of competition between various business entities is important;

6) the existence of a well-developed system of economic, legal and administrative regulation of the economy by the state; the presence of developed antimonopoly legislation and sufficient mechanisms for its implementation, weakening monopolistic tendencies;

7) it is necessary to have a market infrastructure.

The main elements of the market mechanism are price, supply and demand.

The ratio of supply and demand determines the price of goods in the market. The price carries information about the state of the market for consumers and producers, thereby predetermining the behavior of an economic entity in the market. The price is the form of existence of the commodity, its measure. Therefore, it is the monetary expression of the value of the commodity in the broadest sense, i.e. and labor value, and use value, and exchange value.

In the conditions of commodity circulation, production is represented on the market by the supply of goods, and consumption is represented by the demand for goods.

In other words, supply represents the sum of sellers or producers of a given good, and demand represents buyers or consumers (individual or productive) of the same good.

Supply and demand are objectively necessary categories of the market. Through them, the relationship between production and consumption is manifested. Supply and demand ultimately bring production and consumption, based on exchange, face to face.

Demand is the amount of social need, expressed in money. Demand is the demand for goods in the market. Demand is always represented by money, i.e. payment means of the population and enterprises. Effective demand determines the possible volume of sales of goods, i.e. characterizes the capacity of the market.

The offer is a set of goods coming for final sale on the market. The offer is understood as a product that is on the market or can be delivered to it. It follows that the supply of commodities depends on their production and on commodity stocks.

To ensure the normal process of circulation of goods on the market, there must be a correspondence between supply and demand. This is exactly what market regulation is aimed at. First of all, the ratio of supply and demand has a direct impact on the formation of the price level. In turn, this ratio fluctuates depending on the prevailing market prices. Therefore, the price factor actively influences the correspondence between supply and demand.

In the short term, regulation of supply and demand is achieved through: price changes; inventory maneuvering.

In the long term, the regulation of supply and demand is carried out due to the following factors: changes in labor productivity; change in the volume and proportions of social reproduction; changing the structure of personal consumption; regulation of the dynamics of monetary incomes of the population.

It is equally abnormal for the economy to have both an excessive excess of demand over supply, and an excessive excess of the supply of goods over their demand. In the first case, there will be a chronic shortage of goods, in the second case, the masses of commodities will settle in the channels of circulation, their overstocking.

The subjects of market relations are sellers (producers), buyers (consumers) and various intermediaries. They can be: the state (government), enterprises (firms) and households. The objects on the market are all kinds of goods offered for sale (goods and services, labor, means of production, finance, etc.).

Market mechanism represents a set of interdependent methods and levers of influence of an economic nature on production, exchange, distribution and consumption in the system of market laws and commodity-money relations.

The famous American economists Samuelson and Nordhaus define market mechanism for regulating the economy as a form of economic organization, when individual consumers and producers interact through the market to solve common economic problems.

Polish economist Balcerowicz sees market mechanism as a way of maintaining the balance necessary between supply and demand in the horizontal direction. In his opinion, only those in which the market mechanism is the main way of distributing and coordinating goods can be called a market system.

A market that functions freely in reality carries elements of the free. It has natural and unnatural formations of a monopolistic type that tend to keep high prices and therefore interfere with the free movement of resources, which leads to limited access to markets.

Distortion of market processes can occur under the influence of inflation, the wrong policy of the state in the field of economy, miscalculations of entrepreneurs, lack of commercial awareness and other reasons.

The development of distortions in this direction can continue until the start of the market mechanism. In this case, it acts as a limit. Under its influence, despite all the distortions and deformations, prices will change due to the influence of supply and demand on them, and investment flows, the movement of resources will continue to be guided by fluctuations in demand. Other links of the market mechanism remain intact, which keeps the market viable.

Market mechanism(market economy) functions due to the presence in this system of important constituent elements, which as a whole constitute the mechanism of the market. These most important elements include, first of all, producers and consumers. Interaction between them is established as an exchange of results of activity. Producers act as suppliers, consumers - its buyers. Consumption is a logical continuation of the production process, in which the product is processed by users.

The next element is economic isolation due to private or mixed ownership. The third element is prices. This is the most important element, since it is prices that reflect the essence of mutual development in the market. The fourth element is supply and demand. They, like prices, are the main elements of the market, providing a link between consumers of goods and their producers. The fifth element is competition. It also contributes to the expansion of production.

Competitive market mechanism it is a way of interaction of subjects and a mechanism of free regulation of its proportions. Economist A. Smith called competition the "invisible hand" of the market. The main function of competition is to determine the magnitude of economic regulators, such as price, interest rate, and others.

Competition is the freedom of participation of economic units in any economic sector. Such freedom is necessary for an economy to adapt to changes in technology, supply of resources, or consumer tastes. The main advantage of the market is that the efficiency of its production is constantly stimulated. The object of competition is the price and design and quality of products. Competition is characterized by the ability to develop scientific and technological progress, respond to changes in demand, equalize the rate of profit and the level of wages in the sectors of the national economy.

The market is an obligatory component of a commodity economy. Without commodity production there is no market; without a market there is no commodity production. The objective necessity of the market is caused by the same reasons as commodity production: the development of the social division of labor and the economic isolation of the subjects of market relations. These conditions originated and developed as a single whole, as a single process of interaction between production and marketing of products.

The market has many faces and its definition is just as varied. The political economy textbook edited by V. Medvedev and L. Abalkin gives the following definition to the market: "The market is an exchange organized according to the laws of commodity production and circulation, a set of relations of commodity and monetary circulation." Here a number of other questions arise: 1. What are these laws of commodity production and circulation? 2. How to understand the totality of relations between commodity and money circulation? There is a simplified interpretation of the market as a place of sale where sellers and buyers meet.

The market is a type of economic relations between economic entities, it is a social form of functioning of the economy. The market is a form of movement of a social product and services.

P. Samuelson defines the market as "the process of competitive bidding." It is possible (or better) to define the market as a mechanism that brings together buyers (demanders) and sellers (suppliers) of particular goods and services. This definition includes a store, a snack bar, a gas station, a hairdresser, a stock and commodity exchange, the personnel department of any enterprise, etc.

Markets take many different forms. The Eastern bazaar and the domestic "flea market" are a noisy marketplace, where each seller hopes to get a buyer for his goods and, if possible, deceive him. Auction organizers bring together buyers and sellers of art, antiques, racehorses, and more. Many deliver or deliver their goods to houses and apartments at a convenient time for the owners. A representative of a large firm helps graduates of the University to get a job. It connects potential buyers with potential labor sellers. Some markets are local, others are national, international. The market arose at the stage of barbarism and throughout history has performed a creative function. It opened up space for entrepreneurial activity, actively influenced the formation of the production and personal needs of the population. Competition between sellers led to the fact that an unviable entrepreneur dropped out of market relations and went bankrupt. The prosperous became even stronger, even richer. An inept, little knowing or negligent worker was thrown out of the labor process and sank to the "bottom". The mechanism of the market is the mechanism of progress. Its downside is its cruelty. The last essence of everything living according to the laws of natural selection.

Revolutions are constantly being made in the economic market. Increased prices for meat and other livestock products - the buyer switched to potatoes and bread; prices for potatoes have risen - and now, not finding a suitable replacement, the potential buyer, driven by need, has returned to his original position for society - he earns his own living on uncomfortable lands. As a result, the potential seller's structure of production changes. As human needs and desires, production technology, natural resources, and other factors of production change, the market registers changes in prices, quantities of goods sold, and services produced.

The market performs certain functions:
- gives signals to production for the development of certain goods and services, their increase or reduction;
- balances supply and demand;
- ensures the balance of the economy;
- on the basis of differentiation of commodity producers leads to the establishment of a new, progressive society;
- this is a kind of engine of scientific and technological progress;
- objectively forms a corps of skilled entrepreneurs, disciplines the subjects of market relations.

The free market is characterized by the following features:
- an unlimited number of participants in market relations and free competition between them;
- free access to any types of economic activity of all members of the society;
- unlimited freedom of movement of capital and labor;
- availability of complete information about the market for each participant;
- spontaneous price fixing in the course of free competition;
- in the free market, no participant is able to change the market situation at his own discretion.

To a certain extent, we can say that the free market is a self-regulating mechanism. However, any system along with advantages has its disadvantages. As applied to the free market, these shortcomings are as follows:
- The market leads to income differentiation, and consequently, living standards of the population;
- Does not create conditions for the realization of the right to work;
- Does not guarantee full employment of the population;
- Does not create incentives for the production of goods and services for collective use;
- Does not create motivation for fundamental scientific research;
- Does not protect the human environment from pollution;
- The market is ready to satisfy any need, even pathological.

Pure capitalism and the free market have never existed and probably never will. Market freedom has always been relative. Governments intervened in the market mechanism and sought to use it to achieve certain specific goals. Something was forbidden for sale, something was taxed, something was encouraged. With the development of society, the regulatory role of the state in the organization of economic life increased. With the transition to machine production, this process began to proceed especially noticeably. At the turn of the 19th and 20th centuries, it became obvious that large, highly concentrated production was simply unable to develop successfully without direct support from the state.

Due to these circumstances, - says the outstanding American economist and sociologist P. Galbraith, today there cannot be a free market of the time of A. Smith - and who calls for this is a person with a mental illness of a clinical nature.

Below we will return to this issue and consider it in a special section. In this lecture, we need to understand two points: 1) the operation of the market system using the example of a simplified model of pure capitalism and 2) what kind of market system the former republics of the former USSR are trying to achieve.

2. The market mechanism and its elements

The market can be considered by geographical location (local, regional, national, global), by the nature and volume of sales (retail, wholesale), by product range (fish, meat, clothing, footwear, housing) and by a number of other features. We are, first of all, interested in the division of markets by types or objects of production resources:

1. Market for means of production

Trade in the means of production is a grandiose market in which direct producers of products interact with each other. All enterprises are organically connected with each other as suppliers and consumers of machinery, equipment, raw materials, fuel resources. Goods for industrial purposes are usually bought and sold in bulk, in large quantities. Wholesale trade acts as an intermediary between enterprises-producers and enterprises-consumers of products.

A characteristic feature of the market economy is that each buyer and seller finds in this boundless space their partner, whose products and prices suit them. This is trade through direct contractual relations. According to this scheme, the market for the means of production has developed from time immemorial and objectively led to progress in production.

2. Labor market

The labor market is closely connected with the market of means of production. They arose and developed simultaneously, in parallel, complemented each other. The labor market is the most complex of all existing in the economy. For thousands of years there was a trade in slaves and serfs, and labor exchanges became constant companions of capitalism.

The market demand for labor is the sum of the firms' demand. The elasticity of demand for labor depends on the elasticity of demand for the firm's output, on the productivity of labor, and on the ease and efficiency of replacing human labor by machines.

3. Capital and finance market

In the movement of capital value, the monetary form of capital is the most sensitive to all failures in the process of implementation and expanded reproduction. The need for borrowed capital has always existed. Credit is an indispensable condition for any entrepreneurial activity. As sellers of capital (loaning for a certain period for a certain fee - interest) were and are usurers, owners of large capitals, banks. In the 19th century, the securities market - stocks and bonds - developed and is now flourishing. Capital trading ensures its constant movement between types of entrepreneurial activity. Thus, the activity or industry is created, narrowed or expanded, where goods or services are produced to meet industrial and personal needs. The capital market gives proportionality and balance to the whole economy.

4. Market for consumer goods

It interacts with the entire population of producers and sellers of food, clothing, footwear and other consumer goods. Without the development of this market, the social meaning of exchange relations is lost. The security of the population, the level of consumption, and the stability of money circulation depend on the state of the consumer market. This is the vascular system of society, through which the delivery of everything a person needs for life, in accordance with his purchasing power, is ensured.

5. Market of information materials and information services

For a market economy, a sufficiently high degree of uncertainty. The costs and benefits that affect supply and demand decisions are always expected costs and benefits. Producers and consumers, sellers and buyers make decisions based on expected conditions. The quality of the decision being made is the higher, the more information is available when making a decision.

The main way to avoid making the wrong decision is to get more information before you act. In markets where there is not enough information, intermediaries appear who collect and sell information, firms are created that specialize in collecting information about supply and demand. Information is a precious commodity. You want to sell your house for the highest price. You need to find that one buyer who is willing to pay that price. Neither the seller nor the buyer can do without an intermediary. In the proposed deal, they both could benefit from his services. The mediator will bring them together, provide them with the necessary information.

The man was unemployed. He can look for it himself, or he can turn to an intermediary. Employers, in turn, turn to agencies. Beneficial for both parties.

To successfully compete in the market, any company first of all needs an accurate and thorough analysis of the range of customers and their needs. Need to know:
- who is ready to buy this product or service;
- why the consumer will buy your product or service;
- in what form the consumer wants to receive your product;
- at what time he intends to buy your product;
- where he would like to buy your product;
- in what batches and how often he is ready to buy your product, etc.

You need to know the market capacity and much more. The ability of the market to produce high-quality information cheaply is its most important asset. Information is information about what others want to do and under what circumstances. The well-being of people depends on the services of intermediaries in information to a greater extent than we think.

In recent decades, the market for information and information services has been rapidly developing. Trade in scientific and technical developments, software and mathematical software for computers, and intellectual products developed.

Any market, regardless of its specific type, is based on three main elements: price, supply and demand, and competition.

Price is the language of the market, its signal system. The price system in a market economy plays the role of the main organizing force. The price is a reference point for the seller (manufacturer) and the buyer (consumer). Rising price is a signal to expand production, falling - a signal to reduce. The price reflects all three approaches to establishing the value of goods: marginal utility, production costs, supply and demand. The spontaneous action of entrepreneurs leads to the establishment of more or less optimal economic proportions. There is a regulating "invisible hand", about which Adam Smith wrote: interests, he often serves the interests of society in a more effective way than when he consciously seeks to serve them.

In modern conditions, the economy is controlled not only by the "invisible hand", but also by state levers, however, the regulatory role of the market continues to be preserved, largely determining the balance of the national economy.

The regulatory function of the market is the most important. It is connected with the influence of the market on all spheres of the economy. The market answers the questions: "What to produce? How to produce. For whom to produce." The market is inconceivable without competition.

American economics professors Campbell R. McConnell and Stanley L. Brew argue that “the essence of competition lies in the wide dispersion of economic power within the two main aggregates that make up the economy - enterprises and households. When there are a large number of buyers and sellers in a particular market, not a single buyer or the seller cannot present a demand or offer for such a quantity of the product, which would be sufficient to significantly affect the price" ("Economy, Principles, Problems and Politics", Baku, 1992, vol. 1, ch. 3).

The wide dispersion of economic power, which is the basis of competition, regulates the use of this power and limits the possibility of its abuse. Economic condition prevents economic units from causing destructive damage to each other when they try to increase their personal gain. Competition sets limits for the realization by buyers and sellers of their self-interest.

Competition presupposes the freedom of economic units to enter any particular industry and the freedom to exit it. This freedom is necessary for the economy to adapt appropriately to changes in consumer tastes, technology, or resource supply. The main economic advantage of the market system lies in its constant stimulation of production efficiency.

The object of competition is the price with its initial basis - production costs, product quality and design. Competition has both positive and negative sides:
1) it contributes to the development of scientific and technological progress, constantly forcing the commodity producer to apply the best technologies, rationally use resources. In the course of it, economically inefficient production, obsolete equipment, low-quality goods are washed out;
2) it is sensitive to changes in demand, leads to cheaper production costs, slows down the rise in prices, and in some cases to their reduction;
3) to a certain extent equalizes the rate of return on capital and the level of wages in all sectors of the national economy.

The negative aspects include:
1) gives business a certain instability, creates conditions for unemployment, inflation and bankruptcy;
2) leads to income differentiation and creates conditions for their unfair distribution;
3) its consequence may be overproduction of goods and underloading of capacities during periods of production downturns.

3. Demand and factors that determine its value

The most important instrument of a market economy is supply and demand. "Teach a parrot to pronounce the words "Demand and Supply" - and you have an economist!" - such importance is attached to these categories by Campbell R. McConnell and Stanley Brew in understanding economic processes.

There is a lot of truth in this caustic joke, since, in essence, these simple economic levers can give a deep idea not only about individual economic problems, but also about the functioning of the entire economic system as a whole.

Everyone can see that the quantity of things people buy always depends on the price: the higher the price of a good, the less it is bought, and the lower its market price, the more units of this good will be bought, other things being equal. There is always a certain correlation between the price of a commodity and the quantity demanded. This relationship is called the demand curve. Quantity and price are inversely related: when the price falls, the quantity rises, when the price skyrockets, only rich people are able to buy smoked sausages and cheeses (only very rich collective farms can buy expensive agricultural machinery).

There is a law of gradual decrease in demand. The buyer purchases the quantity of this product that he needs. Beyond this quantity, the "value" of the commodity for him decreases. The utility that each subsequent unit of a given good brings is less than the utility of the previous unit. It is called marginal utility. A person can eat the first two apples with appetite, the third - with less desire, and the fourth can cause him discomfort. With an increase in the number of apples, the marginal utility decreases, i.e. each additional apple brings less and less additional satisfaction. The assumption of diminishing marginal utility allows us to explain the behavior of the consumer who maximizes total utility and thereby determine the nature of the dependence of demand on price. The consumer seeks to obtain maximum subjective satisfaction, or utility, using his limited income. If the price of any commodity rises, he tries to replace it with other commodities. A decent leather jacket costs about $200. Many young people would like to have this kind of clothing, but limit themselves to buying a simpler and cheaper jacket. Purchasing leather goods is connected with the limitation of satisfaction of other more urgent needs, i.e. with certain sacrifices.

In economic theory, Demand is the relationship between two specific variables: price and quantity. Demand is determined by a combination of biological and psychological factors, social relations and a set of economic variables (income level, availability of substitutes).

Among the factors that shift the demand curve are: changes in the tastes of buyers, their number, changes in income and prices for related goods. For example, health concerns have led to increased demand for sneakers and bicycles in many countries. The change in incomes in European countries has led to an increase in demand for more valuable and at the same time less nutritious products and has reduced the demand for such products of the lower category as potatoes, cabbage, turnips. Used clothes and retreaded tires are no longer in demand. In our country, the sharp increase in the price of air passenger transportation in early 1993 caused a strain on the operation of passenger rail transport, and the increase in the price of commuter bus travel moved passengers to commuter electric trains.

Demand is determined by costs. But the concept of demand in no way suggests that money is the only thing that matters to people.

In a healthy economy, milk is sold in bottles and bags (a choice is offered). The packages are cheaper, since you have to pay a deposit for a bottle. What would a housewife prefer? Here you need to weigh all the costs: the distance to the house, to the collection point for containers, the presence of a queue, washing dishes, buying for a house or for a summer residence, the proximity of a garbage chute, etc. All this set of expenses when making the most ordinary purchase is calculated in our minds at lightning speed, and only then a decision is made. Money is a common denominator, and therefore it is convenient as a means to change people's behavior. A higher price encourages people to find new solutions. A high price of good A can lead to a decrease in demand for good B, an increase in the price of gasoline reduces the demand for cars. Conversely, a fall in the price of gasoline increases the demand for cars.

Demand is affected by changes in expectations of future prices. These expectations play an important role in determining the position of the demand line. If an increase in the price of salt and matches is expected, then, ceteris paribus, the demand line will shift to the right. If the price is expected to decrease, the demand line will shift to the left. And since during the "perestroika period" former Soviet citizens completely lost their expectation of price reductions, the magnitude of demand grows along with an increase in the volume of purchases. From the expectation of a higher price, purchases "in reserve" are growing.

We have come to the concept of the intensity of the buyer's reaction to price changes. If a small change in price greatly changes the volume of purchases, then demand is said to be elastic. But if even a large change in price only slightly changes the volume of purchases, then demand is inelastic. Price elasticity of demand is defined as the percentage change in demand divided by the percentage change in price. If the elasticity coefficient is greater than one, then demand is elastic. If the entrepreneur is sure that the price reduction will not increase the volume of sales, then he will not reduce the price. But he won't raise the price unless it leads to more sales. The example with salt is a confirmation of the inelasticity of demand. It has few substitutes, the volume of consumption is constant, and the proportion of expenses for its purchase in the family budget is small. And in principle, the volume of purchases and the price will always move in opposite directions. People want more or less of a certain good if it costs them less or more.

4. Product supply and its curve

Supply can be defined as a scale showing the different quantities of a product that a producer is willing and able to produce and offer for sale on the market at any given price from a range of possible prices over a given time. Simply put, under the supply of goods, economists understand someone's desire to sell the goods, and under the supply of goods - the maximum amount of goods that an individual seller would be willing to sell in a unit of time under given conditions.

Sellers are always in conflict. On the one hand, they seek to sell goods at a higher price, on the other hand, they strive to increase sales. As prices rise, so does the quantity supplied; as prices fall, so does supply. This specific relationship is called the law of supply. From the consumer's point of view, a high price acts as a deterrent: the lower the price barrier, the more the consumer will buy. For the supplier, the price represents the revenue for each unit of the product, and therefore it serves as an incentive to produce and offer its product for sale on the market.

You can go a little further and make the assumption that the manufacturer, when deciding on the volume of production to offer on the market, will each time choose the volume of production that provides him with the greatest profit. The release of an additional unit of output at a given value of the price of goods causes an increase in total revenue by a certain amount, which is called the marginal value, and at the same time an increase in total costs by an amount, which is called marginal cost.

If the release of an additional unit of output adds to total revenue more than the amount added by the release of this unit to total costs (that is, marginal revenue is greater than marginal cost), then the producer's profit increases. Otherwise, when marginal revenue is less than marginal cost, profit decreases. The highest profit for the producer will be provided by such a volume of output at which the marginal cost will be equal to the marginal revenue, that is, the price of the goods.

For clarity, let's look at a simple example. Many farmers complete a herd of cows in such a way that the milk yield from each cow per year is as close as possible to 6 thousand kg. A lower value indicates insufficient productivity of the animal, which leads to an increase in the cost per liter of milk. Beyond 6 thousand, the cost of each subsequent liter increases as a result of a smaller increase in milk per unit of feed and costs in general. Economists call this phenomenon the marginal productivity of factors of production. A decrease in marginal productivity means nothing more than an increase in marginal cost. The law of diminishing productivity states that if one of the factors of production is variable and the others are constant, then starting from a certain moment, the marginal productivity of each subsequent unit of the variable factor decreases. The law of diminishing productivity explains the behavior of the producer who maximizes profit and determines the nature of the dependence of supply on price.

The supply curve of any good is based on the cost of production. They depend on the price of resources, production technology, the amount of taxes, the prices of other goods, the number of sellers in the market. A change in any of the cost components will shift the supply of the product either to the right or to the left.

Resource prices. An increase in resource prices will increase production costs and reduce supply. In our economy, the continuous increase in energy prices has affected all sectors of the economy and made the production of many types of products unprofitable. High prices for finished products have sharply reduced the demand for them, as a result of which production continues to decline. Reducing resource prices lowers production costs and increases supply.

Technology. Improvement in technology means that the discovery and implementation of new knowledge makes it possible to produce products with fewer resources. At these prices, production costs decrease and supply increases. At present, during the transmission of electrical energy through wires, the losses are about 30 percent. Recent powerful breakthroughs in the field of superconductivity open up prospects for transmitting it with little or no loss. The transition to resource-saving technologies has become a central problem for firms, industries, and states.

Prices for other goods. Changes in the prices of other goods can also shift the supply curve of a product. The supply of a given commodity depends on the prices of all other commodities. Goods can be mutually complementary and interchangeable both in production and in consumption. Lowering the price of one good may encourage a producer to produce and offer more of the other good at each possible price.

Taxes. Businesses treat taxes as a cost of production. Therefore, an increase in taxes on sales or on property increases the cost of production and reduces supply. The state, carrying out legislative activity, thus establishes the rules of behavior of economic agents. Tax policy should be developed not only on the basis of the interests of the formation of the state budget, but also with the aim of exerting one or another influence on the production of goods.

The number of sellers. Given the volume of production of each enterprise, the greater the number of suppliers, the greater the market supply. As more firms enter the industry, the supply curve will shift to the right.

Expectations. Expectations of product price changes in the future can also influence a manufacturer's willingness to put a product on the market now: hold it or throw it away as much as possible. This is known to every one of us.

5. Supply and demand: market equilibrium

In order to establish how a competitive market price is determined, it is necessary to combine the analysis of demand with the analysis of supply, to reach the interaction of household decisions to buy a product and producers' decisions to sell it. So far, we have considered prices as possible. We said: if the price is such and such, then the amount will be different. It was conditionally assumed that the interaction is between a single buyer and a single seller. The private owner makes a demand or offers his goods for sale, depending on the price structure, the structure of his stocks and the nature of preferences. Realization of desires can run into an obstacle: either the desired product is not there, or it is, but in insufficient quantity, or the price turns out to be unsuitable.

There are many buyers and sellers in the market. Each of them has a specific supply or demand curve. Under perfect competition, none of the sellers or buyers is able to have a significant impact on the price of goods. The size and composition of the groups of sellers and buyers changes when the price changes. When the relative price of a given good is high, there will be many sellers in the market; on the contrary, if the relative price falls, many will decide not to sell the good and possibly become buyers. Market equilibrium is established when the quantities offered for sale match the demand at a given price. The equilibrium price is the price at which demand and supply are balanced. At any price above the equilibrium price, the quantity supplied will be greater than the quantity demanded. This surplus will cause competitive price-cutting by sellers seeking to get rid of their surplus. Lowering the price will reduce the supply and at the same time encourage buyers to buy more of the product. Any price below the equilibrium price results in a shortage of the product.

The ability of the competitive forces of supply and demand to set the price at a level at which the decisions to sell and buy are synchronized is called the balancing function of prices. The equilibrium price does not leave a burdensome surplus for sellers and does not create perceptible shortages for potential buyers. The interaction of supply and demand is a process of mutual adaptation. When prices change, people change their behavior.

With a sufficiently large number of participants in the exchange, the market is an extremely stable system capable of withstanding the strongest shocks. The most important condition for the existence of such a set of prices, which leads to the establishment of a state of equilibrium in all markets, is the convexity of the set of production possibilities and the set of consumer preferences.

If there is only one producer of a good or service in an industry, it can have complete control over the supply and greatly influence prices. The strength of a monopolist is the greater, the higher the entry barriers to the industry and the fewer substitutes for a given product. In the real economy of developed countries there is no pure monopoly, just as there is no perfect competition. Monopoly manifested itself most clearly in the economy of the USSR, when production volumes and prices were dictated by the industry and were under state control. With prices completely inflexible, fluctuations in supply and demand caused shortages or overstocking here. The Soviet people developed a mentality of a waiting list. The fact that the goods must be queued for means that for the consumer the cost of acquiring the goods is the sum of the monetary price, which is set by the seller, and the losses associated with standing in line. Antitrust laws were passed in a number of countries at the turn of the 19th and 20th centuries in order to limit the omnipotence of monopolies.

Review questions:

1. Define the market.
2. What do you understand by demand?
3. Explain the law of demand.
4. Explain the difference between a change in demand and a change in the quantity demanded.
5. Can more of the product be bought at a higher price?
6. Expand the content of the law of gradual decrease in demand.
7. What do you understand by the marginal utility of a product?
8. What factors can lead to a shift in the demand curve?
9. What do you understand by price elasticity of demand?
10. Explain the law of supply.
11. Expand the concept of marginal productivity of production factors.
12. What do you understand by marginal revenue and marginal cost of production?
13. Name the main components of production costs and reveal the impact of each of them on the product offer.
14. How is the market equilibrium established?
15. What do you understand by the equilibrium price?
16. List the main functions of the market.
17. Describe the free market.
18. List the main types of markets and briefly describe them.
19. What are the main elements of the market mechanism.

Market in marketing- ϶ᴛᴏ the totality of existing and potential buyers of a product or service. These buyers have common needs or requests that can be met through exchange.

The size of the market depends on the number of buyers who are in need of a product, have the means to make an exchange and the desire to exchange these funds for the desired product.

In the process of the historical development of the market (commodity) economy, the understanding of the market and the market mechanism, their essence changed, the market itself, its mechanism changed, their role in the economy grew. Initially, the term "market" meant a place where sellers and buyers could exchange their goods. For example, the central square of the city.

In economic theory, the market is one of the most common categories, one of the basic concepts of the economic practice of the economy.

Market in economic theory- ϶ᴛᴏ the totality of economic relations between market entities regarding the movement of goods and money, which are based on mutual agreement, equivalence and competition.

The founder of the theory of the market is considered to be a representative of the classical school of Adam Smith, who was the first to point out the reasons for the development of commodity exchange, and therefore the market. Adam Smith considered such a reason to be the limited production capabilities of a person, which can be increased through the social division of labor, which ultimately leads to the emergence of exchange and the formation of a market.

Market mechanism

Market mechanism- ϶ᴛᴏ the mechanism of interconnection and interaction of the main elements of the market: demand, supply, price, competition and the basic economic laws of the market.

The market mechanism operates on the basis of economic laws: changes in demand, changes in supply, equilibrium price, competition, cost, utility and profit.

The main current goals in the market will be supply and demand, their interaction determines what and how much to produce and at what price to sell.

Prices will be the most important instrument of the market, as they provide its participants with the necessary information, on the basis of which a decision is made to increase or decrease the production of a particular product. In ϲᴏᴏᴛʙᴇᴛϲᴛʙii with ϶ᴛᴏth information, there is a movement of capital and labor flows from one industry to another.

Free (competitive) market- ϶ᴛᴏ self-regulating system, which achieves results and maintains ϲʙᴏё balance spontaneously, without the intervention of external forces.

Signs of a free market:

Unlimited number of competitors.
Sign, free access and exit from the market.
Absolute mobility of all resources.
Availability of full information (through prices)
Absolute homogeneity of products.
No one participant in the competition can influence the decision of others.

Functions of the free market:

It is the regulator of the economy.

It is a means of ensuring national economic relations.
Is a tool of information (through prices)
Provides optimization of the national economy.
Provides sanitation of the national economy.

Market conditions

The economic situation of producers and consumers, sellers and buyers depends on the market situation, which changes under the influence of numerous factors.

Market conditions- ϶ᴛᴏ the totality of the economic conditions that are developing on the market at any given time, under which the process of selling goods and services is carried out.

Market infrastructure

Market infrastructure- ϶ᴛᴏ a set of institutions, systems, services, enterprises that mediate the movement of goods and services, serve the market and ensure its normal functioning.

The market infrastructure includes such elements as:

exchanges
- trading
- stock
- currency;
auctions, fairs;
wholesale and retail trade enterprises;
banks, insurance companies, funds;
labor exchanges;
information centers;
legal offices;
advertising agencies;
audit and consulting firms, etc.

All these elements are very closely related to each other. If they are in equilibrium, then the entire economy is also in equilibrium. And vice versa, the destabilization of at least one of the elements is negatively demonstrated throughout the market economy as a whole.

Market structure

Market structure- ϶ᴛᴏ internal structure, location, order of individual elements of the market.

The following criteria can be distinguished for classifying the structure of the market:

Market structure by objects of market relations
- consumer goods and services market
- stocks and bods market
- raw material market
Market structure by market entities
- buyers market
- sellers market
Market structure by geographical location
- local
- National
- world
Market structure by degree of restriction of competition
- perfect competition
- monopolistic competition
- oligopoly
- monopoly
Market structure by industry
- automotive
- oil
Market structure by the nature of sales
- wholesale
- retail
Market structure according to current legislation
- legal
- illegal
- "black market

Market Functions

Information function

The market provides objective information about changing economic conditions:

number of manufactured products
range
quality

Intermediary function

The market allows economic agents to exchange the results of their economic activities.
The market makes it possible to determine how effective and mutually beneficial one or another system of relations between specific participants in social production is.

Pricing function

The market establishes value equivalents for the exchange of products. With ϶ᴛᴏm, the market compares individual labor costs for the production of goods with the social standard, that is, it compares costs and results, reveals the value of the product by determining not only the amount of labor expended, but also the amount of benefit that the product brings to society.

Regulating function

There is a balance between the producer and the consumer, between the seller and the buyer.

Stimulating function

The market encourages producers to create new products, necessary goods at the lowest cost and obtain sufficient profit; stimulates scientific and technological progress and, on its basis, increases the efficiency of the functioning of the entire economy.

Enterprises that fail to solve the problems of improvement go bankrupt and die due to competition, making room for more efficient ones. As a result of this, the level of stability of the entire economy as a whole is gradually increasing.

Advantages and disadvantages of the market mechanism

Benefits of the Market Mechanism

Although not ideal, the market mechanism, nevertheless, has a number of advantages that are unique to it:

Efficient resource allocation that alleviates resource scarcity.
Possibility of successful operation with very limited information (sometimes information about the level of price and costs is considered sufficient)
Flexibility, high adaptability to changing conditions, quick correction of imbalance.
Optimal use of the achievements of scientific and technological revolution (in an effort to maximize profits, entrepreneurs take risks by developing new products, introducing the latest technologies into production)
Regulation and coordination of people's activities without coercion, that is, the choice and actions of economic entities.
The ability to meet the diverse needs of people, improve the quality of goods and services.

Disadvantages of the market mechanism

Does not contribute to the conservation of non-reproducible resources.
Does not have an economic mechanism for environmental protection (legislative acts are needed)
Does not create incentives for the production of goods and services for collective use (education, health care, defense)
It does not provide social protection for the population, does not guarantee the right to work and income, and does not redistribute income in favor of the unsecured.
does not provide basic research in science.
Does not provide stable economic development (cyclical booms, unemployment, etc.)

Everything ϶ᴛᴏ predetermines the need for state intervention, which would complement the market mechanism, but not lead to its deformation.

Markets in the national economy

National markets: concept, types, principles of organization

nationwide market- ϶ᴛᴏ economic structure, which ensures effective interaction between consumers and producers.

The nationwide market is characterized by the following characteristic features:

the exchange procedure is based on the basic economic laws;
the process of interaction between consumers and producers finds its second expression in supply and demand;
will be a means of effective interaction between consumers and producers.

For the normal functioning of the market, the process of movement of goods is regulated by legal acts, which creates its legal framework.

The structure of the national market includes the following markets:

Market of economic resources, which includes the process of circulation of resources necessary for the production of goods. The goods here are the resources of production, and pricing for them occurs as a result of the interaction of supply and demand;
Financial market, which includes the circulation of a specific commodity - capital, the price for which is determined by the percentage for the use of money;
Labor market. It is based on the free relationship between the employee and the employer, and labor becomes the subject of purchase and sale. The price for it is set as a result of the interaction of supply and demand for it. Offer - ϶ᴛᴏ the offer of people who are willing to work. And demand is ϶ᴛᴏ the need for employees of a certain qualification and profession;
Market for consumer goods, which is a process of interaction between the producer and the consumer about the good - the result of economic activity. Material published on http: // site

It is worth noting that they represent the four main elements of the national market - economic resources, capital, labor and consumption, the functional interaction of these and determines the specifics of the national market.

The object of the market will be good - goods and services that are included in the subject of circulation in the market.

The essence of the national market is associated with its specific qualitative and quantitative characteristics.

The main quantitative characteristics of the market will be:

number of manufacturers on the market;
the number of consumers in the market;
distribution of positions between manufacturers;
the degree of market concentration, i.e. the volume of transactions carried out on it for the purchase and sale of goods.

The main qualitative characteristics of the market will be:

opportunity for new manufacturers to enter the market;
the number of barriers to entry of new manufacturers;
the level of competition in the market;
the degree of exposure to external factors;
presence and degree of interaction with other markets, such as international ones.

The interaction of a set of qualitative and quantitative characteristics determines the type of market.

Given the dependence on specific conditions, each of the national markets can exist as:

It is worth saying - polypoly -϶ᴛᴏ market of perfect competition. It is important to know that a large number of producers and consumers of the same type of good allows you to quickly respond to price changes.

For the functioning of the ϶ᴛᴏth type of market, a prerequisite will be the behavior of all producers and consumers, who have all the information about the state of the market. It is worth noting that it is not subject to external regulation and operates freely, based only on the interaction of a large number of independent producers and consumers. The existence of such a market is impossible in practice, since there cannot be absolutely free producers and consumers on the market, and information will almost never be available to everyone;

Monopoly- ϶ᴛᴏ market, on which only one producer of a certain good and many consumers operate. The producer, who has a monopoly position in the market, offers a unique good, which cannot be replaced by another, and sets the price for it independently;

Monopolistic competition -϶ᴛᴏ market, on which several large producers of a homogeneous good operate. This good is essentially homogeneous, but each monopolist presents it with distinctive, unique features for it - a product segment. Note that each monopolist has the necessary economic power to independently set the price policy for the good he produces, but it is limited to the extent that the consumer will be forced to switch to the use of a substitute product. Under these conditions, the activity of the monopolist is aimed at strengthening the degree of individuality of the good he offers (for example, with the help of a certain trade mark, brand, sign);

Oligopoly- ϶ᴛᴏ market, in which several producers of a good that is homogeneous in its composition accept an agreement on the development of a unified pricing policy and supply volumes. There is a tendency for pricing stability on it, and it is either difficult or impossible for new producers to enter it.

The structure of the national market is heterogeneous, it includes a large number of smaller markets. They usually specialize in the circulation of a certain economic resource or good. The interaction of these markets of the national economy is the essence of the national market, determines its dynamics and pace of development.

Market failures

To market failures ᴏᴛʜᴏϲᴙ are:

natural monopolies- one firm satisfies all the demand for products, since the more it produces, the lower its average cost. To natural monopolies ᴏᴛʜᴏϲᴙt railways, the energy system of the country, the subway, etc. Increasing competition, i.e. the emergence of other manufacturing firms reduces the efficiency of using limited resources, since new firms would have to lay parallel communications in the course of competition;
information asymmetry will be that one economic agent has more information about any object or phenomenon than his partner. In the ϶ᴛᴏm case, he is in a more advantageous position and can extract superprofits from it. Information asymmetry will be especially strong in such sectors as education and health care, since a person is not able to assess in advance the qualifications of a teacher or a doctor. Under a free market (without state intervention), such a situation would lead to a deterioration in the quality of education and medical services, and, consequently, would reduce the welfare of society;
externalities- a situation where the actions of any economic agent affect third parties that are not related to this economic agent. An example of a negative externality is environmental pollution by a manufacturing enterprise, loud music from neighbors, etc. With all this, there are also positive externalities, for example, the location of the apiary next to the orchard (bees pollinate flowers, increasing yields and the amount of honey) take control of them;
public goods- benefits that are used by all members of society without exception, and their volume and quality do not depend on the number of consumers. These benefits include national defense, ϲʙᴏd laws, law and order, the healthcare system, etc. The market is not able to produce such goods, since it cannot provide payment for these goods (since no one can be excluded from the use of this good). The state, by collecting taxes, is able to provide financing for public goods.

Roar Essence:

In a broad sense, the market means a system of economic relations between people, covering the processes of production, distribution, exchange and consumption. The market acts as a complex mechanism for the functioning of the economy, based on the use of various forms of ownership, commodity-money relations and the financial and credit system. The market system is based on private ownership of factors of production, entrepreneurial activity and competition between participants in market transactions.

The emergence and development of the market as an economic system is a long historical process, the beginning of which was predetermined by two major conditions:

1) social division of labor,

2) economic isolation of commodity producers and the emergence of private ownership of factors of production.

The market mechanism includes three main elements:

1) prices of consumer goods and economic resources;

2) the demand for the product and its supply;

3) competition.

The establishment of prices for economic resources serves as a guide for the producer of goods in determining the volume of production and the choice of technology. The prices of goods and services produced determine who, at a given level of income, will consume the product produced.

Demand for a good is the demand for a good on the market, determined by the quantity of goods that consumers can buy at prevailing prices and money incomes.

The supply of a commodity is the quantity of goods available for sale at a given price. A change in the relationship between supply and demand generates fluctuations in market prices around the so-called equilibrium price, at which the balance of production and consumption is ensured.

Competition in market relations exists both between producers of goods for the most favorable conditions for the production and sale of products, and between buyers of goods for the opportunity to purchase the necessary goods (especially in conditions of shortage). The nature of competition can be different, it significantly affects the way to achieve market equilibrium.

The market performs the following major functions:

1) pricing or the function of self-regulation of commodity production. Constant price fluctuations around the equilibrium price under the influence of changes in supply and demand indicate an increase or decrease in demand for a product, this encourages the manufacturer to increase or decrease the volume of output of goods;

2) regulatory. The market sets the basic proportions in the economy at the micro and macro levels by expanding or contracting supply and demand. With the help of the regulatory function, the distribution of economic resources by branches of production takes place. In those sectors where there is an increase in prices, there is a revival of production, since the owners of production factors are striving here, then, when the supply of goods exceeds the demand for them, the reverse process will begin - market prices will begin to decline and an outflow of economic resources will occur;

3) stimulating. Encourages manufacturers to create needed products at the lowest cost and achieve higher profits through cost reduction and innovation. If an individual commodity producer uses the achievements of scientific and technological progress, improves technology, saves resources, then this will reduce the cost of producing goods and get additional profit;

4) differentiating. Those firms whose production costs are below the established market price receive income and become richer, thereby strengthening their position in this market segment. Those firms that suffer losses become bankrupt and are forced to leave the market for this product. The stratification (differentiation) of incomes of participants in market relations is an objective result of the action of the price mechanism;

5) sanitizing. The market mechanism is a rigid system and, with the help of competition, clears social production of economically unstable, unviable economic units, leaving the most enterprising and efficient ones. In this regard, the average level of stability of the country's economy is continuously increasing;

6) intermediary. In a market economy with sufficiently developed competition, the consumer has the opportunity to choose the optimal supplier of goods. At the same time, the seller of the goods is given the opportunity to choose the most suitable buyer;

7) information. Through constantly changing prices and interest rates on credit, the market provides production participants with objective information about the quantity, range and quality of those goods and services that are supplied to the market.

The market infrastructure includes:

Infrastructure of commodity markets (commodity exchanges, wholesale and retail

trade, auctions, fairs, intermediary firms);

Financial market infrastructure (stock and currency exchanges,

banks, insurance companies, investment funds);

Labor market infrastructure (labour exchanges, employment service,

retraining of personnel, labor migration).

Market entities (structure):

The main subjects of the market economy are usually divided into three groups: households, firms, and the state.

A household (household) has the following features:

1) it is an economic unit that unites persons living under one roof and making (or forced to make) common financial decisions;

2) it is the main structural unit functioning in the consumer sector of the economy;

3) these are owners and suppliers of economic resources (labor, land, capital) who independently make decisions about their sale;

4) the money received from the sale of economic resources is spent on meeting personal needs. The goal of the household as a consumer is to maximize utility from the consumption of purchased goods and services.

The firm (enterprise) has the following features:

1) it is an economic unit that buys economic resources for the production of goods and services;

2) it is the main structural unit functioning in the sphere of production of goods and services and ensuring their entry into the markets of consumer goods;

3) the firm is a sovereign user of the purchased economic resources (factors of production);

4) when creating a company, it is supposed to invest its own or borrowed capital, and the income from its use is spent on expanding production activities.

The goal of the firm is to maximize profits.

The state is represented mainly by various budgetary organizations that carry out the functions of state regulation of the economy, social policy and foreign economic activity.

The purpose of the state is to maximize public welfare.

Market types:

1) The degree of economic independence of market entities (sellers and buyers):

Perfect competition market (free);

Monopolistic competition;

Oligopoly, incl. duopoly;

Pure monopoly;

Monopsony

2) Object of sale (type of goods sold)

The market of goods and services (consumer (;

Market of means of production;

Market of information, intellectual products, spiritual goods;