Models of government intervention in market equilibrium. Production costs in the short run are in the market of monopolistic competition

a) costs of production and sale of products

b) fixed and variable costs

c) the cost of purchasing equipment

Fixed costs are the costs of

a) salaries of management personnel, security, interest on loans, depreciation

equipment

b) the salary of workers, security, the cost of raw materials and equipment

c) remuneration of employees, depreciation of equipment, rent

d) raw materials, electricity, interest on the loan

An increase in a firm's variable costs can occur as a result of an increase in

a) interest rates on bank loans

b) local taxes

c) raw material prices

d) rent for the equipment of the company

Average total costs are minimal when

a) they are equal to marginal costs

b) the total output is minimal

c) the total output of products is maximum

d) variable costs are minimal

Option number 8

Exercise 1.Describe the structure of production. Present the answer in the form of a table.

Task 2. To solve a problem.

The costs of a monopoly firm are described by the function The demand function for the firm's products is presented in the form, then the degree of its monopoly power (Lerner's coefficient) is ...

Task 3. To solve a problem.

During the reporting period, the volume of savings increased by 400 den. units, while disposable income increased by 1300 den. units Under these conditions, the multiplier of autonomous expenses is ...

Task 4. Case task.

The graph shows the function of supply and demand in a certain national market. It is known that the government has decided to set the highest possible price level.

a) The purpose of such intervention in the established market equilibrium can be….

Increasing the availability of goods for consumers

Reducing the likelihood of ruining sellers

Increased consumption of goods

Limiting the volume of consumption of goods

b) Examples of markets requiring such interventions in the established market equilibrium are markets ...

Items made of precious metals

Public transport services

Task 5.

An example of a natural monopoly is

b) publishing house "Kommersant"

c) Moscow metro

d) the firm "Red October"

Unlike a competitive firm, a monopolist

a) can set any price for his product

b) maximizes profit when marginal revenue and marginal costs are equal

c) can produce any volume of products and sell them at any price

d) for a given market demand curve, he can choose a combination of price and volume

issue that maximizes profit

The only seller facing many buyers

a) trades only in homogeneous goods

b) focuses on the needs of buyers

c) dictates prices

d) does not take into account the behavior of its customers

Anti-monopoly legislation is primarily aimed at ensuring

a) the prohibition of monopolies

b) economic freedom

c) equal conditions of competition

d) price regulation

In the market of monopolistic competition

a) an individual buyer can influence the price of a product

c) goods differ in performance and terms of sale

d) there is only one manufacturer

Option number 9

Exercise 1... Describe the forms and types of property. Present the answer in the form of a table.

Varieties of forms of ownership	Character traits	Ownership and business forms
Private property
Individual property (private labor)
Capitalist private property
Collective ownership
Cooperative property
Share ownership
Partner property
Public property
State property
Property of public organizations

Task 2. To solve a problem.

The income, expenses and savings of the consumer for two years are presented in the table.

Based on the data presented, we can say that the average propensity to save in 2009 was

Task 3. To solve a problem.

If the nominal GNI increased from 3500 billion. units up to 3850 billion den. units, and the price level for the same period increased by 4%, then the real GNI ...

Task 4. Case task.

In the fitness services market, the functions of individual demand of two corporate consumers for subscriptions to a fitness club are as follows: Qd1 = 90-2P; Qd2 = 210-3P.

The function of the market supply of subscriptions has the form Qs = -20 + 35P, where Qd1 and Qd2 are the demand of the first and second corporate consumers for a subscription per month (units), Qs is the supply of subscriptions per month (units), P is the price of a subscription (thous. rub.).

The market demand function Q D for subscriptions to a fitness club will have the form ...

Task 5. Tests. Choose the correct answer.

Market pricing according to the laws demand and suggestions, the formation on this basis of equilibrium market prices underlie the self-regulation of the market economy, its ability to solve economic problems more efficiently than other systems.

Forms of government intervention in pricing

The reality of modern market economy are such that there are practically no countries where this or that form of state intervention in the pricing process has not been carried out. The most common options for such interventions in the operation of market competitive forces include government control over prices, as well as the imposition of taxes and subsidies. In the first case, violations of the competitive pricing mechanism are quite obvious. In the second case, the indirect impact through taxation and subsidies does not externally disrupt the effect of market pricing, but usually significantly distorts it. Does the market need such intervention? And if so, why and within what limits?

Let's consider both directions of government intervention in more detail.

State control over prices

The established equilibrium prices, due to various circumstances, do not always suit society. State intervention in this case can take the form of a compulsory (legislative) establishment fixed prices.

These fixed prices can be of two types.

1. When the equilibrium prices are perceived to be too high by the society, the state sets prices below equilibrium (maximum prices, or price ceiling).

2. When equilibrium price seems too low, then prices are legally set above the equilibrium price (minimum prices, or the lower price level).

Consequences of price fixing

Solving the tasks assigned to them with varying degrees of success, fixed prices simultaneously lead to already known violations of the market equilibrium (see Fig. 4.6):

If the fixed price is lower than the equilibrium price, deficit goods;

· If the forced price is higher than the equilibrium price, the result will be a surplus of goods.

In both the first and second cases, with free pricing, the market could develop a mechanism for getting out of a disequilibrium state. When the price is legally fixed, it blocks the actions of competitive market forces and government intervention is again necessary to solve the problems that arise.

In fig. 4.20 provides a detailed graphical interpretation of the price cap case. On the basis of fixed prices in a market economy, the state, as a rule, tries to solve certain social issues. So, the state is forced to resort to setting the maximum price (price ceiling - P A) when the equilibrium price (P 0) is so high that it excludes this product from the consumption of most of the population, and the product belongs to basic necessities (bread, sugar, milk ). Most often, a similar situation is likely during periods of wars, crises, crop failure, etc.

Rice. 4.20. Setting a fixed price

Due to the introduction of fixed prices, a stable deficit (Q A - Q B) arises. This means that by setting a low price for the benefit of the population, the state, at the same time, does not guarantee all its citizens the opportunity to receive this product. If we are talking about a socially significant product, then the consequences can be no less negative than with high prices. In the end, people do not care why they will not consume bread: because of the high price or because of the lack of it in the store. In both cases, the blame will be placed on the government, which does not know how to manage the economy.

Black market

Another negative consequence of price caps is the black market, which is a companion to scarcity. The reasons for its existence are understandable - some citizens are ready to overpay in excess of the state-set price for goods absent in official trade. This can be prompted by various circumstances - from high incomes, when life becomes a reality on the principle of "time is money", to emergency events that happen in everyone's life (illness, holidays, etc.), when people with relatively low incomes are ready to pay for scarce commodity big money.

And then an inevitable chain of consequences arises. Suppose that state-controlled producers do not dare to exceed the marginal price P A, but then they will limit the volume of production to the level of Q B, corresponding to the supply curve S.

It is this fixed volume of products that will fall into the hands of the shadow economy, providing the “procurement” of a scarce commodity. Accordingly, the supply curve S will be replaced by a new vertical supply curve S 1, which reflects the behavior of intermediaries. And its intersection with the demand curve will set the price and quantity that characterize the equilibrium in the black market. It is clearly seen that the final equilibrium point in the black market is reached at a significantly higher price than the equilibrium price of the free market (P 2> P 0). But the purpose of government intervention was precisely the overestimation equilibrium price... In other words, black market- this is a sure sign of the failure of the state policy of price caps.

Black market in the USSR

Only those who did not live in Russia in pre-reform times did not face the black market. Buying meat, footwear, clothing, building materials "off hand" was a common occurrence in the Soviet economy. The overwhelming majority of the scarce goods never entered the open sale, but were immediately distributed to “their own people”, who later resold them at inflated prices.

Of course, with speculation The army of controllers fought, but their efforts yielded almost zero results. The trade workers were simply taking more precautions. In addition, controllers are also people, they constantly tried (and often successfully) to bribe them.

The punishable nature of speculation also made people who were trying to buy a scarce commodity to be cautious. It was obvious that the seller would not take a bribe in direct form from an unknown person. Therefore, in order to have meat, one had to “make friends” with the butcher (ie, not just give money, but give gifts, express our respect in every possible way, etc.), in order to drive a serviceable car - “befriend” the auto repairman.

Quantitative estimates of the prevalence of the black market in the USSR are very unreliable, however, according to experts, in the 1970s, 20-30% of all consumer goods passed through it.

3.Limiting the volume of consumption of goods

4.Reducing the likelihood of sellers going bust

2. Examples of the market that require such intervention in the established market equilibrium are markets ...

1. Bread

3. Public transport services

4. Articles made of precious metals

3. The result of the introduction of a "ceiling" of prices for 40 den per unit. less than the equilibrium price, there will be a shortage of goods equal to ... thousand pieces

3.6. LICENSE SELLERSDVD-discs

AGAINST PIRATES. Topic 8

According to the Russian Anti-Piracy Organization, 70 million DVDs worth about $ 70 million were sold in Russia in 2009, of which about 10 million were sold legally. Warner Home Video and Universal Pictures International decided to reduce the price of licensed DVDs. discs sold in Russia, from 300 - 350 to 199 rubles. per disk. Due to this, the leaders in the sale of video products hoped to squeeze the pirates selling illegal copies for 150 rubles. and below. DVD sellers believed that the new price would have a beneficial effect on the sales of licensed products. They predict a 30% increase in DVD sales in the legal market.

Questions to the case

1. Analyze the situation on the video market from the standpoint of supply and demand theory.

2. Provide a substantive business case for the expectations of sellers of licensed video products.

3. Why will sellers of licensed video products be able to squeeze pirates when the price of licensed DVDs will still be higher than the price of pirated discs?

3.7. Milk products. Topic 9

The enterprise-manufacturer of dairy products "Sergeevsky" has launched a new technological line for the production of yoghurt with fruit filler "Slastena". Among potential competitors in this market segment, the management of the enterprise "Sergeevsky" singles out yoghurts "Bifrukt" and "Vital". The planned market price at which the Slastena yoghurt will be sold is 30 rubles. The supply function has the form Qs = 0.4P + 20, where Qs is the supply volume (thousand 1-liter bottles of yoghurt), P is the price (rubles for a 1-liter bottle of yogurt).

1. After the product entered the market, the functional relationship between the price of "Slasten" and the volume of demand for yoghurt took the following form: Qd = 80–2p, where Qd is the volume of demand (thousand 1-liter bottles of yogurt), P– price ((rubles per - a liter bottle of yoghurt) .Then the equilibrium market price of “Slasten” yoghurt will be ... rubles

0.4P + 20 = 80–2p2.4 P = 80–20 2.4 P = 60 P = 60: 2.4 = 25

2. With the aim of replenishing the budget deficit, the state made a decision to introduce a per-product tax on dairy producers. At the same time, the equilibrium parameters in the Slasten yogurt market could change as follows

1 supply curve has shifted to the left

2. The equilibrium price has decreased

3) the equilibrium price has risen

4 demand curve has shifted to the right

3.Choose the consistency of the results of the government's imposition of a product tax on yoghurt production

2.Reduction in sales

1.Rise in market price

3.Reduction in production

4.Increased production costs

4. As a result of the unsuccessful organization of entrepreneurial activity, the producer of yogurt "Vital" announced the termination of its activities and exit from the industry, therefore the manufacturer "Bifrukt" became the main competitor producing the substitute product. by 2%, the volume of demand for "Slastena" increases by 4%. Based on the available data, the coefficient of cross-elasticity of demand for "Slastena" at the price of "Bifrukt" will be equal to .. 4: 2 = 2

The need for state regulation of the market economy is due to both the imperfection of individual markets and the need to solve macroeconomic problems. The main methods of state regulation of the market are: state control over the level of prices, the introduction of taxes, the provision of subsidies, the establishment of market quotas.

Price fixing is carried out by the state in the following cases:

1) the equilibrium prices seem too high to the society (the state sets their level below the equilibrium ones by introducing a maximum level or ceiling of prices);

2) the equilibrium price seems to be too low to support commodity producers (the state legally sets prices above the equilibrium level, the so-called minimum prices or the lower price level).

In the first case, there is a shortage of goods (excess demand), and in the second - a surplus of goods (excess supply). This situation is reflected in Fig. 3.9.

Rice. 3.9. Price fixing

Fixed prices exceeding equilibrium prices are set in some countries for agricultural products, most often as a result of political pressure on the government from agricultural producers. However, in this case, the government must solve the problems associated with the emergence of a surplus of products on the market. Often the government buys all this surplus with taxpayer money. But it cannot "throw" the purchased products to the domestic market, as this will inevitably lead to a decrease in market prices.

Export of products to other countries does not solve the problem either, since in this case the state competes with its own private exporters in the external market, thereby reducing private exports, which leads to an increase in supply and a drop in prices within the country. The government has to increase state stocks of agricultural products without a clear perspective of their further use (store, destroy, provide free aid to other countries, etc.).

In an attempt to reduce the surplus of production, the government may resort to additional administrative measures. For example, it can set quotas for each producer on the volume of production or the limits of cultivated areas, it can pay premiums for their reduction, etc. This will lead to a reduction in supply and a decrease in surplus production. But these measures require the creation of a special administrative apparatus, increase government spending on its maintenance, on the payment of the aforementioned bonuses, etc. In this regard, many foreign economists question the economic feasibility of setting government fixed prices above the equilibrium price level.

When setting a price ceiling below the equilibrium level, the state, as a rule, tries to solve certain social problems. For example, if the equilibrium price is so high that it excludes this product from the consumption of most of the population, and the product belongs to basic necessities (bread, sugar, milk). Most often, a similar situation is likely during periods of wars, crises, crop failure, etc. As a result of the introduction of fixed prices below the equilibrium level, a persistent shortage of goods arises.

This means that by setting a low price for the benefit of the population, the state, at the same time, does not guarantee all its citizens the physical ability to receive this product.

Another negative consequence of setting the administrative price below the equilibrium level is the emergence of a “black market” with very high prices. The black market is a satellite

com deficit, since some citizens are ready to overpay in excess of the state-set price for goods absent in official trade. As a result, the low price leads to the limitation of the volume of supply at the level of Q s 2. This fixed volume of output leads to a shift in the supply curve from position S to position Si and the formation of a black market price at the level of P2, significantly higher than the equilibrium level of P E (see Fig. 3.9). As a result, there is a decrease in the level of consumer welfare.

^ Illustrative problem

Supply and demand are described by the equations: Q d = ~ = 8000 - 12P and Q s = 4P- 750. How will the situation on the market develop?

if the administrative price is set equal to CU 500? What will be the price of the "black market" in this case? Solution

With P = 500 DE, Q d = 8000 - 12 500 = 2000 pieces, and Q s = = 4 * 500 - 750 = 1250 pieces. Since Q d> Q s, there will be a situation of excess demand (shortage of goods) in the market in the amount of 2000 - 1250 = 750 pcs.

With P = 500 CU, manufacturers will supply the market with a volume of products equal to 1250 pcs. Let's substitute this volume in the demand equation: 1250 = 8000 - 12P, 12P = 6750, P = 562.5 CU. This is the “black market” price, which is much higher than the state price.

Counteracting the deficit, the state can either increase the supply of missing goods through additional purchases abroad, or reduce the demand for the goods through rationing, i.e. setting restrictions on the volume of purchases (for example, using cards, coupons, coupons to normalize the consumption of scarce goods). Both of these methods were widely used in our country during the existence of directive prices set by the state.

Rationalization is the government's restriction of the volume of purchases for certain goods.

Indirect taxes. The mechanism for the payment of indirect taxes (VAT, excise taxes, customs duties) assumes that the buyer pays the price for the goods with a surcharge in the form of an indirect tax, and the seller transfers an amount equal to the amount of the tax to the state budget. As an example, let's say that the state has introduced excise tax (T) in the form of a fixed amount of payment for each unit of goods (Figure 3.10).

Rice. 3.10. Changes in the market equilibrium under the influence of an indirect tax

The seller will be forced to ask for any quantity of goods a price greater than the previous one by the amount of the tax. This will lead to a shift of the equilibrium curve to the left upwards and the establishment of a new equilibrium point (E 1), which will correspond to a new, increased equilibrium price (E ei) and a new, reduced equilibrium quantity (Qet) - This means that the buyer will have to pay more than before the tax was introduced. But the seller will not win either. After all, from the selling price of each product, he will have to give the state an amount equal to the amount of the tax. As a result, “price minus

tax ", ie what the seller actually gets will be only Ps, which is clearly less than P E.

The amount of government tax revenues will be equal to the tax rate multiplied by the number of goods sold (T · Q 1). On the graph, they will form a rectangle P s P E1 E 1 A. In this case, the tax burden will be distributed: buyers will pay part of the tax, and sellers will pay part of it.

In fig. 3.10 it can be seen that tax payments are located exactly in that part of the market equilibrium graph where the surplus of the consumer and the producer was previously located, i.e. the state with the help of taxes withdraws part of them in its favor. At the same time, the shaded triangle AEEi, reflecting another part of the reduction in the volume of consumer and producer surpluses, will not be included in the state revenues either, i.e. will simply disappear without reaching anyone. Therefore, it can be defined as the net loss of society associated with taxation.

I- "* Illustrative problem

0 Supply and demand are set by the functions: Q d = 100 - P and Q s = 2P - 50. The state introduces a 10% sales tax. What are the consequences of this?

After the introduction of the tax, the offer function will change, since 10% of the price will have to be paid in the form of tax. Consequently, the enterprise will have 0.9P, then the supply function will be described by the expression Qs = 2P · 0.9 - 50.

The demand, which has remained unchanged, is equated to a new expression for the supply: 100 - P = 2P · 0.9 - 50, therefore, P e * = 54 DE, Q e * = 46 pcs.

Before the introduction of the tax: 100 - P = 2P - 50, therefore, P e = 50 DE, Q e = 50 pcs.

Thus, the equilibrium market price increased by 4 units, and the equilibrium volume decreased by 4 units.

The impact of indirect taxes on sales and the distribution of the tax burden depends on the slopes of the supply and demand lines. Consumers pay tax in full, either with a vertical demand line or with a horizontal

noah supply line. Producers pay full tax on either a vertical supply line or a horizontal demand line. The less elastic the demand and the more elastic the supply, the more tax falls on consumers and less on producers. Given that the elasticity of supply increases over time, an increasing proportion of the tax is shifted onto the shoulders of consumers.

Thus, the introduction of taxes causes a shift in the supply curve to the left, an increase in the market price and a decrease in the volume of sales of goods.

Subsidies and grants. A kind of antipode of taxes is government subsidies and subsidies.

Subsidy is a one-time allowance in cash or in kind provided from the budget or from special funds to individuals or legal entities, local authorities, and other states.

Grant - government cash benefits in the form of additional payments provided to citizens and individual organizations to cover losses or for special purposes.

In order to stimulate the production of some goods, the state can take on part of the producer's costs (to support a loss-making enterprise or an expensive high-tech project). Subsidies or subsidies (H) cause a shift in the supply curve (Figure 3.11) from position S to position S 1. As a result, a new equilibrium point (E 1) and the corresponding equilibrium price (Pe 1) and equilibrium volume (Q e 1) appear.

For each product sold, the manufacturer will receive an additional payment (H), i.e. the actual selling price of the product, taking into account the subsidy for it, will be

The total amount of government spending on subsidies is equal to the value of the product subsidy multiplied by the number of goods sold, which on the graph corresponds to the area of the rectangle

Rice. 3.11. Changes in the market equilibrium under the influence of subsidies

Compared with the previous equilibrium price P E,

to the producer or the consumer, in fact, this is a net loss of society from the provision of a subsidy. As in the case of taxes, one has to pay for the artificial deviation of the equilibrium point from the natural level - part of the subsidy amount is lost.

Illustrative task

Supply and demand are set by the functions: Q d = 1200 - 5P

and Q s = 500 + 5P. The state provides a subsidy to the manufacturer in the amount of CU 10 per unit of production. How will the equilibrium price and equilibrium volume change after the introduction of the subsidy? What will the manufacturer's selling price be equal to?

After the introduction of a subsidy of 10 CU per unit of production, the supply function will change: Q s = 500 + 5 (P + 10). The demand, which has remained unchanged, is equated to the new expression for the supply: 1200 - 5P = 500 + 5 (P + 10). Therefore, P E = 65 DE, Q e = 1200 - 5 · 65 = 875 pcs.

Before the introduction of the subsidy, the market was characterized by the following parameters: 1200 - 5P = 500 + 5P, therefore, P E = 70 De, Q e = 850 pcs.

Thus, the equilibrium market price decreased by CU 5, and the equilibrium volume increased by 25 units.

The producer price will be: P s = P 0 + H = 65 + 10 = = 75 De, which is higher than the initial equilibrium level

by 5 MU (Pq = 70 MU).

Thus, the introduction by the government of subsidies and subsidies to producers causes a shift in the supply curve to the right, an increase in equilibrium production volumes, and a decrease in equilibrium prices. Subsidizing consumers, respectively, causes an increase in consumer income, a shift in the demand curve to the right, an increase in the market price, and an increase in the equilibrium volume of sales. In any case, subsidies and subsidies entail an increase in the surplus of consumers and producers, an increase in their well-being.

Market equilibrium can only be considered relative to a fixed unit of time. At each subsequent moment of time, market equilibrium can be established as some new value of the market equilibrium price and the amount of sales of goods at this price, taking shape during a month, season, year, a number of years, etc. but market equilibrium is always such a state of the market in which QD = QS. Any deviation from this state sets in motion forces that can return the market to a state of equilibrium: eliminate the deficit (QD> QS) or surplus (surplus) of goods on the market (QD< QS)

Thus, surplus arises if, at a certain price, the supply of goods exceeds the demand for it.

A product is in short supply if the value of the demand for the product is greater than the value of its supply.

Consumers do not always think that existing prices are optimal. The point is that the imperfection of the social structure of production on the surface appears as an imperfection of the price system. Public dissatisfaction with existing equilibrium prices forms a fertile ground for government intervention in market pricing. In practice, this translates into setting maximum or minimum prices. If the maximum price set by the state ("price ceiling") is below the equilibrium level, then a deficit is formed, if the state sets the minimum price above the equilibrium level (the so-called subsidized price), then a surplus is formed. Fixing prices means disabling the market coordination mechanism. In conditions when the price is below the equilibrium level, the deficit does not diminish, but increases, moreover, non-monetary costs are added to the consumer's monetary costs. The latter are associated with the search for goods, standing in queues, etc. - all of them are deadweight costs that do not serve to expand the production of scarce goods. They settle in the sphere of distribution of scarce goods, and do not reach those who actually produce them. The price ceiling "cuts" the producers' surplus and thereby reduces the incentives to produce it at those enterprises that have minimal production costs for this product. Therefore, the deficit does not decrease. On the contrary, those who sell (or distribute) the scarce product are interested in preserving it, since it becomes a source of their income (as it increases the amount of non-monetary costs). Therefore, they will in every possible way promote state regulation of prices under various "plausible" pretexts.

In cases where the price is above equilibrium, there is a need for additional measures to stimulate supply restriction and an increase in demand in order to narrow the gap between the subsidized and equilibrium prices. In both cases, the market economy begins to function less efficiently than in conditions of perfect competition.

The counterbalancing function is performed by the price, which stimulates the growth of supply when there is a shortage of goods and relieves the market from surplus, restraining the supply. According to Walras, in conditions of deficit, buyers are the active side of the market, and in conditions of surplus, sellers. According to Marshall's version, entrepreneurs are always the dominant force in shaping market conditions.

Any surplus of goods, i.e. surplus, pushes the price of goods down to the equilibrium point E. Any shortage of goods in the market will push the price of goods up to the equilibrium point of supply and demand E. market.

Externalities (externalities) in the economy - the impact of a market transaction on third parties, not mediated by the market.

The foundations of the concept were introduced in 1920 by Arthur Pigou in The Economic Theory of Welfare. The very phrase "externalities" was introduced by Paul Samuelson in 1958

In the presence of external effects, market equilibrium ceases to be effective: a "dead weight" (eng. Deadweight Loss) appears), Pareto efficiency is violated, that is, a market fiasco occurs.

Stanley Fischer: "Externalities always occur when the actions of a certain household or firm directly affect the costs or benefits of some other households or firms, and when these side effects are not fully reflected in market prices."

The fact that public goods are largely non-rival means that giving these goods to one person entails giving them to another. Therefore, if potential consumers are faced with the problem of financing public goods, then they are tempted to hide their true willingness to pay for it (willingness to pay), because they hope to take advantage of the good paid for by others. If the magnitude of the good cannot be changed, then it will be provided to everyone in an equal amount, and the one who refused to finance it will nevertheless benefit from its existence. If the value of the good can change (for example, different amounts of clean air), then the announced refusal to pay for it will reduce the amount provided, however, in this case, the one who refused will have a benefit, since he will receive the good without paying for it. Therefore, such individuals are called free riders. If this phenomenon becomes widespread, then a systematic underproduction of public goods arises, and a situation arises in which the supply of goods, as a rule, must be carried out by the government. The question of whether the number of actual free riders is large is now widely discussed. Some experiments on willingness to pay have shown that there is little difference between true and revealed preferences.

Tax is a mandatory, individually free payment levied from organizations and individuals in the form of alienation of funds belonging to them by right of ownership, economic management or operational management in order to financially support the activities of the state and (or) municipalities.

The characteristic features of the tax are as follows:

· Obligation;
· Individual gratuitousness;
· Alienation of funds belonging to organizations and individuals on the basis of the right of ownership, economic management or operational management;
· Focus on financing the activities of the state or municipalities.

Different taxes affect different groups of economic agents in different ways, in addition, they are levied in different ways. There are several classifications of types of taxes:

Types of taxes for the object:

· Straight lines;
· Indirect.

Direct taxes are levied directly on individuals and legal entities, as well as on their income. Direct taxes include income tax, income tax, property tax. Indirect taxes are levied on resources, activities, goods and services. Among the indirect taxes, the main ones are value added tax (VAT), excise taxes, import duties, sales tax, etc.

The classical requirement for the ratio of systems of indirect and direct taxation is as follows: the fiscal function is performed mainly by indirect taxes, and direct taxes are mainly assigned a regulatory function. In this case, the fiscal function is, first of all, the formation of budget revenues. The regulatory function is aimed at regulating through tax mechanisms of the reproduction process, the rate of capital accumulation, the level of effective demand of the population. The regulatory effect of direct taxes is manifested in the differentiation of tax rates and benefits. Through tax regulation, the state ensures a balance of corporate and national interests, creates conditions for the accelerated development of certain industries, stimulates an increase in jobs and investment and innovation processes. Taxes affect the level and structure of aggregate demand and through this influence can facilitate or hinder production. The relationship between production costs and the price of goods depends on taxes.

Types of taxes by subject:

· Central;
· Local.

There is a three-tier system in Russia:

· Federal taxes, established by the federal government and credited to the federal budget;
· Regional taxes are in the competence of the subjects of the federation;
· Local taxes, set and collected by local governments.

Types of taxes based on the target use principle:

· Marked;
· Unmarked.

Marking refers to the linking of a tax to a specific direction of spending. If the tax has a targeted nature and the corresponding receipts for any other purpose, except for the one for which it was introduced, is not used, then such a tax is called marked. Examples of labeled taxes include payments to the pension fund, compulsory health insurance fund, road fund, etc. All other taxes are considered unlabeled. The advantage of unmarked taxes is that they provide flexibility in fiscal policy - they can be spent at the discretion of the government body in the areas that it considers necessary.

Types of taxes by the nature of taxation:

· Proportional (the share of tax in income, or the average tax rate with income growth);
· Progressive (the share of tax in income increases with income);
· Regressive (the share of tax in income falls with income growth).

As a rule, income taxes are progressive. The greater the income of an individual, the greater part of it he is forced to give to the state. As a rule, a progressive scale is established for the collection of income tax. For example, with an income of up to 30 thousand rubles. an individual pays tax at a rate of 12%, if his income exceeds the specified amount, then - 20%. Regressive taxes mean that their share is higher in the income of the poorer part of the population. The regressive nature of the tax is manifested in the event that the tax is set at a fixed rate per unit of goods. Then the share of the tax collected in income will be higher for the buyer whose income is lower.

Types of taxes depending on the sources of their coverage:

Taxes, the costs of which are included in the cost of products (works, services):
· land tax;
· Tax on road users, tax on vehicle owners, fees for the use of natural resources;
Taxes, the costs of which are attributed to the proceeds from the sale of products (works, services):
· VAT;
· Excise taxes;
· Export tariffs;
Taxes, the costs of which are included in the financial results:
· Taxes on profits, property of enterprises, advertising;
· Targeted fees for the maintenance, improvement and cleaning of the territory;
· Tax on the maintenance of the housing stock and social facilities;
· Collection for the needs of educational institutions;
· Car parking fees;
· Taxes, the costs of which are covered from the profit remaining at the disposal of enterprises. This group includes a part of local taxes: tax on the resale of cars and computers, license fee for the right to trade, tax on transactions made on stock exchanges, tax on the construction of industrial facilities in resort areas, etc.

Tax rate (tax rate) - the amount of tax charges per unit of measurement of the tax base. It is one of the compulsory elements of the tax.

When the tax rate is expressed as a percentage of the taxpayer's income, it is usually called the tax quota.

Main types:

· Solid - set in an absolute amount per unit (sometimes the entire object) of taxation, regardless of the size of the tax base.
· Proportional (ad valorem) - act in the same percentage of the tax base without taking into account its size.
· Progressive - increase with the growth of the tax base.

Laffer curve (Laffer curve) shows the relationship between state budget revenues and the dynamics of tax rates.

It was developed by the American economist Arthur Laffer.

A graphic representation of this dependence is shown in the figure.

The tangency points of the Laffer curve show that if, for example, the level of taxation is zero, then the state loses its income. If it intends to take away all revenues (t = 100%), then the economic process stops and the state budget will be left without revenues. At a rate of t max, the total amount of state revenues will reach a maximum of T max. Attempts to raise the tax rate, for example, to the value of t 1, will lead to a decrease in government revenues. The author shows that raising tax rates to a certain level leads to an increase in budget revenues. Such a positive impact is possible only up to a certain limit, and behind it begins the so-called "exclusion zone" of the taxation scale. Taxes levied on the basis of high rates lead to a significant reduction in budget revenues. This is explained by the fact that high taxes suppress private initiative and undermine the desire for new investments. A. Laffer concluded that tax rates have reached a level that restrains the pace of economic development and proposes to reduce tax rates, and above all on profit. It is theoretically impossible to find the optimal value of the tax rate, and many economists try to calculate it empirically. But here there are significant differences: some, including Laffer, believe that the United States crossed the t max line in the late 70s, others disagree and argue that the tax rate can be increased. Of course, the real world is a very imperfect platform for testing the results of such a gigantic experiment. The tax reform, along with other measures, allowed the United States to increase business activity, increase the rate of economic growth (5.5% in 1999): "lengthen" the business cycle and achieve a deficit-free budget.

Subsidy - payments to consumers provided at the expense of the state or local budget, as well as special funds to legal entities and individuals, local authorities / In accordance with the Budget Code of the Russian Federation, two types of subsidies should be distinguished:

Subsidy - an interbudgetary transfer provided for the purpose of co-financing the expenditure obligations of the lower budget
Subsidy - funds provided from budgets and extra-budgetary funds to legal entities (not budgetary institutions) and individuals

The main properties of the subsidy:

Free, non-refundable transfer of funds
Target character
Co-financing (on the terms of equity financing)

Direct subsidies are used to finance fundamental research and development work (grants), introduce new technology into production, and retrain personnel. On the one hand, subsidies can encourage the development of promising industries, on the other hand, they can support unprofitable but strategically important enterprises (with all the consequences of government intervention in the market economy). Agricultural production is subsidized through compensation payments.

Indirect subsidies are provided by means of tax and monetary policy. The state applies preferential taxation of corporate profits, practices the refund of direct taxes and customs duties, state guarantees and insurance of deposits, export credits, and provides loans to private associations on preferential terms.

The aggregate of subsidies from the city budget to the budgets of municipalities forms a co-financing fund.

Quota - the norm, share or part of something allowed within the framework of possible agreements and contracts, the share of possible participation in a joint business (production, marketing, export or import of goods, etc.); quota in immigration policy - a limitation, a limit of the permissible annual inflow of immigrants; in the contribution of the member countries of the International Monetary Fund (IMF) to the capital of the fund.

Restrictive measures are called quotas.

In connection with the practice of restrictions used in international trade, a quota is also understood as quantitative control over imports and their restrictions. Import quotas are set by the federal government to protect domestic producers in selected industries from foreign competitors. The use of such quotas as a protectionist measure has both pros and cons. The economic gain for producers and those employed in protected industries is significant, which translates into increased profitability. Enterprises that need to restrict competition from foreign manufacturers can exert quite tangible political pressure, demanding the introduction of a quota. At the same time, the costs of such restrictions are passed on to the consumer, since domestic goods turn out to be more expensive than in free trade, and the range of consumer choice is reduced.

Market structures in the modern economy.

Under the market structure, it is customary to understand a set of many specific signs and features that reflect the peculiarities of the organization and functioning of a particular industry market. The concept of market structure reflects all aspects of the market environment within which a firm operates - this is the number of firms in the industry, the number of buyers in the market, the characteristics of the industry product, the ratio of price and non-price competition, the bargaining power of an individual buyer or seller, etc. Theoretically there can be a large number of market structures. Nevertheless, many economists consider it possible to simplify the analysis by resorting to a typology of market structures based on several basic parameters - signs of an industry market.

1. The number of firms in the industry. The number of sellers operating in a given sectoral market will determine whether an individual firm has the ability to influence market equilibrium. All other things being equal, with a large number of firms in a given market, any attempts by an individual firm to influence market supply by reducing or increasing individual supply will not lead to any significant changes in market equilibrium. In this case, the market share of each particular firm is negligible. A different situation will arise when the market share of a firm is large, that is, one or more large firms operate in a given market. Such a firm has the opportunity to influence the market supply, and hence the market equilibrium and market price.
2. Control over the market price. The degree of control of an individual firm over the price is the most striking indicator of the level of development of competition relations in the industry market. The more control an individual manufacturer has over price, the less competitive the market is.
3. The nature of the products sold on the market - a standardized or differentiated product is produced by the industry. Product differentiability means that in a given market, different firms offer products designed to meet the same need, but differing in different parameters. Here there is such a relationship: the higher the degree of differentiation (heterogeneity) of industry products, the more the firm has the opportunity to influence the price of the goods it produces and the lower the degree of competition in the industry. The more standardized (homogeneous) industry products are, the more competitive the market is.
4. Conditions for entry into the industry, which is associated with the presence or absence of barriers to entry into the industry. The presence of such barriers will hinder the entry of new firms into this industry market and, consequently, the development of industry competition.
5. The presence of non-price competition. Non-price competition takes place if the industry product is differentiable. Non-price competition - competition for the Quality of products, services, location and availability, and advertising.

Pure (perfect) competition. This is a state of the market when a large number of firms produce similar products, but neither the size of firms nor other reasons allow even one of them to influence the market price, and therefore the demand for the products of an individual firm will not decrease as it increases. sales. In the graph, the demand curve for an individual firm appears as a straight line parallel to the horizontal axis. For the entire market, the demand curve has a negative slope, and the supply curve is positive. The intersection of the demand curve with the supply curve corresponds to a market equilibrium point with a certain market price and equilibrium sales volume. In a competitive market, they are

Pure (absolute) monopoly. A market is considered to be absolutely monopolized if there is only one manufacturer of a product operating on it, and this product has no close substitutes produced in other industries. Therefore, in a purely monopoly environment, industry boundaries and firm boundaries coincide. Therefore, the demand curve for the products of a monopoly firm is similar to the market demand curve, that is, it has a negative slope.

Monopolistic competition. This market structure bears some resemblance to perfect competition, except primarily that the industry produces similar but not the same products. Product similarity gives firms partial monopoly power over the market. Differences in the product may not affect the quality of the product as such. The increased demand may be due to more attractive packaging, more convenient store location, better organization of trade (good service, gift vouchers, after-sales service), which is why buyers prefer this product. For each such firm, the demand curve has a negative slope, and therefore the firm can influence the price.

Monopsony. A market situation where there is only one customer. The monopoly power of the buyer leads to the fact that he sets the price.

A discriminatory monopoly. Usually this refers to the practice of companies setting different prices for different buyers.

Bilateral monopoly. A market in which one buyer with no competitors is opposed by one seller-monopolist.

Oligopoly. A market situation in which a small number of large firms produce most of the output of the entire industry. In such a market, firms recognize the interdependence of their sales, production, investment and advertising.

Duopoly. A market structure in which only two firms operate. A special case of oligopoly.

Polypoly is a situation when a limited number of large sellers operate on the market and at the same time the laws of competition are fully in force.

Unlike monopoly and oligopoly, in which, respectively, there is a single supplier of a unique product, service or type of activity (monopoly) with many buyers, or the market is dominated by a small number of sellers (oligopoly), with polypoly, there are many sellers (suppliers) and many buyers (consumers ). Nevertheless, the ratio of the number of both those and others is sufficient to maintain competition.

Polypsony is a situation in which the number of buyers is so small that their actions have a real impact on the market price, and large enough so that any buyer cannot confidently determine the impact of his actions on the behavior of other buyers in the market.

Oligopsony is a market situation characterized by a limited number of consumers and a large number of sellers (producers).

In such a market, sellers are very sensitive to each other's pricing policies and marketing strategies. A typical example of oligopsony is, for example, the aircraft parts market, where very few aircraft manufacturers are consumers. Almost the entire military-industrial complex operates in the oligopsony regime, the products of which are purchased by a very limited circle of state power departments or the governments of other countries.

Each of these market structures is distinguished by a different degree of market power of an individual producer, which is inversely related to the degree of development of competition relations in the market. Market power is the ability of a producer or consumer to influence the market situation, primarily the market price. If market power will manifest itself on the demand side, then we should talk about the bargaining power of the buyer. The market power of a manufacturer consists in whether or not he has the ability to influence the sectoral (market) price of manufactured products by changing the volume of output. The market power of an individual seller will be determined by the specifics of the organization of the market structure and will depend on the following factors:

* the share of this firm in the total industry supply. The greater the share of a given firm in the market supply, the more opportunities it has, changing its own offer, to influence the industry-wide (market) supply, and hence the market price;
* the degree of price elasticity of demand for the firm's products. The less elastic the demand is, the less the firm fears a negative reaction from the consumers of its products, the more opportunities it has for price maneuver, the higher its market power;
* availability of substitutes for a given product, since the more substitutes a product has, the higher the degree of price elasticity of demand. And high elasticity will limit the bargaining power of a given firm;
* the peculiarities of interaction between firms operating in the industry, which can cause the emergence of market power among manufacturers operating in the industry. This situation is possible if firms can collude and reach agreements on market sharing and market price.