Page 117 - Azerbaijan State University of Economics

Nazim U. Hajiyev: Assessment stages of cyclical development of monopoly and
competition in terms of the reconstruction of Azerbaijan economy

The competition in Adam Smith opinion – is “invisible hand” which is make

people obtain total benefit, even each of these people try to obtain benefits from

its own. That’s why, market economy based on operating general benefit of society

and socially-oriented is not possible without sufficiently high level of development

of competition.

Conclusion

Monopoly – is the source of difference between personal interest and total

benefit. In terms of competition is removed the personal interest of entrepreneur is

contradict with interest of society. This type of market economy was characteristic

for the beginning of the XX century and was little more effective than soviet

command system. Non-effective proof of this type of market economy was “Great

Depression”. Though there was a big difference, the crisis of Azerbaijan economy in

90th certainly had general similarity with “Great Depression”. This general basis – is

monopolistic organization of production. That’s why, formation of an effective

competitive environment, reducing the private share of monopoly sector – is the

main factor for stable and dynamic development of Azerbaijan's economy in the

XXI century and it’s successful integration into the world economy.

References

[1] E.H. Chamberlin, Theory of Monopolistic Competition (Reorienting the theory of value):

Trans. from English. - Moscow: Economics, 1996. – 415 p.

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