Competition in economics social science. Market competition in the modern economy

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Attention! The slide preview is for informational purposes only and may not represent the full extent of the presentation. If you are interested this work please download the full version.

Class: 10

Equipment: interactive whiteboard (screen), teacher's computer, Microsoft Office PowerPoint 2003, presentation, scales with two bowls, paper weights.

Lesson Objectives:

educational: determine the economic significance of competition, characterize the types of competition, identify the advantages and disadvantages of competition;
developing: develop the ability to think independently, logic, apply previously studied material to assimilate new material;
nurturing: educate students the ability to independently acquire knowledge, responsibility, attention.

During the classes

1. Organizational stage

Teacher: "Hello. Today we have to study a rather voluminous material, so I ask everyone to tune in to intensive work.” (In advance, each student is given a worksheet; slide No. 1 on the board).

2. Knowledge update

Teacher: “The modern market economy is a complex organism, consisting of a huge number of diverse industrial, commercial, financial and information structures interacting against the backdrop of an extensive system of business legal norms, and united by a single concept - the market. Today in the lesson we will analyze the key concept that expresses the essence of market relations. Your task, after listening to a parable from the famous book "Cash Flow Quadrant" by Robert Kiyosaki, is to determine the topic of the lesson. (further the teacher tells a parable)

3. Learning new material

Teacher: “So, what economic concept is described in this situation ( pupils: “rivalry") and the topic of our lesson: (pupils: “Competition”). There are many statements about this concept, for example: Evin Kannan believes that “economic competition is not war, but rivalry in the interests of each other. This is an incentive for business development.” But Anthony de Mello in the collection “One Minute of Stupidity” wrote that competition is the source of universal evil, it brings out the worst in you, because it teaches you to hate. How many people, so many opinions. Tell me, in order to agree with them or refute what we need to do in the lesson (students: “reveal economic importance competition, determine the advantages and disadvantages of competition”).. To do this, consider the following questions in the lesson: 1) Competition: definitions and functions; 2) Types of competition; 3) Advantages and disadvantages of competition. Let's move on to the first question. We have already met with this concept when studying the types of economic systems. Therefore, try to define the concept of “competition”, based on previously acquired knowledge. (students offer their options, then the material is summarized by the teacher). Competition- (from lat. Concurrere - to collide) - the struggle of independent economic entities for limited economic resources. A. Smith interpreted competition as a behavioral category, when individual sellers and buyers compete in the market for more profitable sales and purchases, respectively. Competition performs the following functions in the economy: regulation, motivation, distribution, control (students are invited to correlate the name of the function with the description of reality, slide 7) their goods. Those. we turn to the second question: Types of competition. Your task is to identify the main types of competition along the way and enter their distinctive features in a table (see appendix), which you will hand over for verification at the end of the lesson.

The teacher on the blackboard shows an example of the type of competition, and the students independently, according to the existing criteria, determine the main features. The table is checked (students name their options).

Teacher: “To consolidate this material, I suggest you work with the following exercise, your task is to read carefully and answer the questions, arguing your answer (see appendix).

After fixing the material on the second question, students are invited to vote “for” or “against” the statement: “Competition is an incentive for business.” Each student puts a paper weight on the scales “For” or “Against” competition, while arguing his answer.

The answers may be as follows:

Advantages:.

1. Promotes more efficient use of resources;

2. Causes the need to respond flexibly and quickly adapt to changing production conditions;

3. Creates conditions for the optimal use of scientific and technological achievements in the field of creating new types of goods, etc.;

4. Provides freedom of choice and action for consumers and producers;

5. Directs manufacturers to meet the diverse needs of consumers and to improve the quality of goods and services.

Flaws:

1. Does not contribute to the conservation of non-renewable resources (animals, minerals, forests, water, etc.);

2. Negatively affects the ecology of the environment;

3. Does not ensure the development of the production of goods and services for public use (roads, public transport etc.);

4. Does not create conditions for the development of fundamental science, the education system, and many elements of the urban economy;

5. Does not guarantee the right to work (stimulates unemployment), income, rest;

6. Does not contain mechanisms that prevent the emergence of social injustice and the stratification of society into rich and poor.

4. Consolidation of the studied material

Students are asked to take a test (see appendix)

Summing up the lesson

Each of you has already received a mark for the test, you have seen how much you have mastered the new material, but I would like you to answer the following questions at the end of the lesson:

What economic term was discussed in this lesson?
What was our goal? Have we reached it?
What did you like (dislike) about the lesson?
Can you evaluate your work in class? (it is proposed to fill out an evaluation sheet, see Appendix)

Homework: paragraph 7.1 (fundamentals of economic theory / edited by S.I. Ivanov); give examples of industrial markets of the Ramensky district for each type of competition.

Competition (lat. concurrere - to compete) - rivalry between participants in the market economy for the best conditions for the production, purchase and sale of goods. Such an inevitable clash is generated by objective conditions: the complete economic isolation of each market entity, its complete dependence on the economic situation and confrontation with other contenders for the greatest income.

The struggle of private commodity owners for economic survival and prosperity is the law of the market.

The essence of competition is manifested in the fact that it. on the one hand, it creates such conditions for which the buyer in the market has a great many opportunities to purchase goods, and the seller - to sell them. On the other hand, two parties take part in the exchange, each of which puts its own interest above the interest of the partner. As a result, both the seller and the buyer, when concluding an agreement, must make a mutual compromise in determining the price, otherwise the agreement will not take place, and each of them will incur losses.

An indispensable condition for competition is the independence of subjects market relations from certain "higher" and external "forces. This independence is manifested, firstly, in the ability to independently make a decision on the production or purchase of goods or services; secondly, in the freedom to choose market partners. In the process of competition, economic entities seem to mutually control Competition is also an important instrument for regulating the proportions of social production under market conditions.

There are the following functions of competition:

identifying or establishing market value goods;

equalization of individual values and distribution of profits depending on the various costs of labor;

regulation of the flow of funds between industries and industries.

There are several types of competition. Consider the classification of types of market competition on a number of grounds.

Types of competition by scale of development

According to the scale of development, the following types are distinguished:

individual (one market participant seeks to take his place under the sun - choose best conditions purchase and sale of goods and services);

local (among the commodity owners of some territory);

sectoral (in one of the market sectors there is a struggle for the greatest income);

intersectoral (rivalry between representatives of different market sectors for attracting buyers to their side in order to extract more income);

national (competition of domestic commodity owners within a given country);

global (the struggle of enterprises, economic associations and states different countries on the world market).

According to the nature of development, competition is divided into free and regulated. Also, competition is divided into price and non-price.

Price competition arises, as a rule, by artificially knocking down prices for these products.

Non-price competition is carried out mainly through the improvement of product quality, production technology, innovation and nanotechnology, patenting and branding and the conditions for its sale, "serving" sales.

Types of competition depending on the fulfillment of the prerequisites for competitive market equilibrium

There are perfect and imperfect competition.

Perfect competition is competition based on the fulfillment of the prerequisites for competitive equilibrium, which include the following: the presence of many independent producers and consumers: the possibility of free trade in factors of production; independence of business entities; homogeneity, comparability of products; Availability of market information.

Imperfect competition is competition based on the violation of the prerequisites for competitive equilibrium. Imperfect competition has the following characteristics: division of the market between several large firms or complete domination: limited independence of enterprises; product differentiation and market segment control.

Types of competition depending on the ratio of supply and demand (goods, services)

The following types of competition can be distinguished (varieties of perfect and imperfect competition):

oligopolistic:
monopoly.

Pure competition is an extreme case of competition and belongs to the type of perfect competition. The key characteristics of a market of pure competition are: a large number of buyers and sellers who do not have sufficient power to influence prices; undifferentiated.

Oligopolistic competition is imperfect competition. The key characteristics of the market of oligopolistic competition are: a small number of competitors that create a strong relationship; greater market power: the strength of a reactive position, measured by the elasticity of the firm's responses to the actions of competitors; the similarity of goods and the limited number of their standard sizes.

Monopolistic competition is competition of an imperfect kind. The main characteristics of the market of monopolistic competition: the multiplicity of competitors and the balance of their forces; product differentiation

Types of competition depending on the ratio of the number of business entities regarding the investment of capital in the field of production or marketing

There are intra-industry and inter-industry types of competition.

Intra-industry competition is competition between industry entities for more profitable terms production and marketing of products, obtaining excess profits. Intra-industry competition is the starting point in the mechanism of competition. The main functions of intra-industry competition:

the possibility of establishing the social, market value of the goods and the market equilibrium price;

stimulation of scientific and technological progress;

economic coercion to improve production efficiency;

identification of weak, less organized producers;

limiting the economic power of leaders.

Intersectoral competition is competition between entrepreneurs in various industries for a more profitable investment of capital based on the redistribution of profits. The emergence of intersectoral competition is based on unequal conditions of production (different structure of capital and the rate of its turnover, fluctuations in market prices), leading to different rates of profit.

Main functions of intersectoral competition:

the possibility of modernizing industries, as new enterprises are created on a progressive scientific and technical basis:

strengthening of intensification, growth of production efficiency;

optimization of sectoral proportions, restructuring of the economy.

Types of competition in accordance with the need underlying the product

There are horizontal and vertical types of competition.

Horizontal competition is competition between producers of the same product. It is a kind of intra-industry competition, i.e. competition for the best production of functional properties and product parameters.

Vertical competition is competition between manufacturers of different products that can satisfy the same customer need. For example, with the help of a TV, you can satisfy the need for information, leisure, education, etc.

Types of competition depending on the ratio of supply and demand for a particular product

There are the following types of competition, which are varieties of intra-industry competition: the competition of sellers of goods and the competition of buyers of goods.

The higher the degree of seller competition, the lower the degree of buyer competition and vice versa. The vectors of action of these two tendencies are opposite, and their impact on society is the same, so there is a certain balance between them. When the supply and demand curves interact, a period of relative equilibrium arises, which has three phases: short-term. medium and long. In a short-term equilibrium, price is determined by demand. As the time period lengthens, the price is already determined by the value, i.e. costs.

Keywords

COMPETITION / PERFECT COMPETITION / PERFECT COMPETITION/ MONOPOLY / MONOPOLY POWER / INTRA-INDUSTRY COMPETITION / INTER-INDUSTRIAL COMPETITION / UNFAIR COMPETITION

annotation scientific article on economics and business, author of scientific work - Kazhuro N.Ya.

The essence of competition as an objective regularity in the development of commodity production based on private ownership of the means of production and commodity exchange is shown. showing economic basis market economy(private property), which gives rise to the corresponding purpose of production. This goal is to maximize profits and minimize the costs of market entities. Therefore, the struggle for the most favorable conditions for the production and sale of goods in such conditions is inevitable, it appears on the surface of a society with a developed market economy as competition. Competition is not seen as an exogenous factor affecting the market economic system from the outside, but as an objective phenomenon inherent in the market system of management as such, which is due to the economic isolation of individual producers. Being an important engine of a market economy, competition does not establish its laws, but only acts as a “executor” of data inherent in commodity production of laws and, above all, the law of profit maximization, which determines the goal and driving motive of economic entities in the economy. In a market economy, competition plays a controversial role. On the one hand, it forces manufacturers to constantly strive to reduce costs in order to increase profits. As a result, labor productivity increases, production costs are reduced, and the company is able to reduce retail prices for its products. Therefore, by increasing the efficiency of production, competition acts as a potential factor in lowering prices. On the other hand, under conditions imperfect competition sellers have more freedom in setting prices, as they sell their products in conditions of monopolistic competition or oligopoly. This is the main weakness market system economy.

competition as market mechanism

The essence of a competition as an objective law for development of the commodities production based on private owner-ship of the means of production and commodity exchange has been revealed in the paper. The paper presents an economic basis of market economy (private ownership) which generates a corresponding production objective. Such purpose is a maximization of profit and a minimization of market subject expenses. Therefore, a struggle for the most favorable conditions on commodity production and sales is inevitable in such a situation. The struggle is considered in the community with developed market economy as a competition. The competition is regarded not as an exogenic factor exerting its influence on the market economic system from the outside, but as an objective phenomenon which is inherent to the management market system in itself. Such treatment is substantiated by economic disintegration of individual commodity producers. Being an important engine of the market economy, the competition does not establish its laws, and its role is to be an executive of data which are internally inherent in commodity production laws and firstly it concerns a profit maximization law which defines a purpose and guiding motif of economic entities in the given economy. The competition plays a contradictory role under the conditions of the market economy. On the one hand, it makes manufacturers constantly to aspire to expense reduction for the sake of profit increase. This has resulted in labor productivity increase, production cost decrease and a company receives an opportunity to reduce retail price for its products. consequently, the competition acts as a potential factor for lowering prices while increasing production efficiency. On the other hand, sellers have more freedom in price fixing under conditions of imperfect competition as they sell their products under the conditions of a monopolistic competition or an oligopoly. This is the main weakest point of the market economy system.