Page 8 - Azerbaijan State University of Economics

THE JOURNAL OF ECONOMIC SCIENCES: THEORY AND PRACTICE, V.74, # 1, 2017, pp. 4-9

b о > b d > b м

b 4 3
Output o

volume

D
b о

2 M

b м
1
B d

M D O Time

Fig. 3. Dependence of output characteristics of production on time in the
environment of various technologies.

As can be seen, the relationship between monopoly and competition is very
simple and there is no contradiction between them. Initially, the market is born as a
monopoly, and then, through development, transfers into competition.
Thus, we can conclude that with the growth of the number of competing firms,
the types of market structures change, and their sequence from pure monopoly to
perfect competition can be represented by the following chain:

Pure Duopoly Oligopoly Imperfect Perfect

monopol competitio competition
y n

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