The statement made by Edwin Cannan reveals the essence of managing a market economy from the standpoint of economic competition. Not a single market system in most countries of the world can do or will do in the future without competition, because only competition is a condition for the functioning of the market and satisfying the needs of customers with the most favorable relationship between price and quality.

British economist Edwin Cannan believes that "economic competition is not war, but competition in each other's interests." The author seeks to prove that competition is not cruelty, but on the contrary, competition is needed by the market and can also be useful for the producers themselves. After all, due to competition, sellers strive to improve the quality of products in order to interest buyers. Consequently, they invest in the development of science and technology, thereby ensuring progressive trends in the development of society. I agree with the author's opinion and believe that the role of competition in a market economy is enormous, and that it is precisely this that contributes to healthy interaction.

Let's consider the concept of economic competition itself.

Competition is the rivalry between market participants for the best conditions for the production, purchase and sale of services and goods. Competition is a natural phenomenon. It is generated by private property, the complete economic isolation of each owner of goods of a particular type, the dependence of the position of sellers and buyers on the market price, which sets the rules of transactions for absolutely all participants.

Free market competition has two types: individual and mass competition. The first type is capable of changing only the individual value of the product, which belongs to one owner, while the second leads to a change in the overall market value. Free competition in all forms is conducted by relatively peaceful methods. It comes down to the economic suppression of a rival (his ruin) mainly through open price competition (bringing down prices).

Massive competition leads to subsequent results. Firstly, to establish an equilibrium market value, thereby regulating the surplus or shortage of goods. Secondly, thanks to competition, a single price is introduced for homogeneous products of the same quality. Thirdly, competition stimulates scientific and technological development. Since the manufacturer, trying to spend fewer resources per unit of production, introduces innovations in techniques and technologies, various methods of economical use of resources. And ultimately, competition increases the socio-economic division of market participants. Small enterprises do not withstand the severe test of strength and go bankrupt. Competition is characterized by a tendency to deepen inequality, and then the gap between small and large owners. Let's give specific examples.

In the IT products market, investors invest in the development of new technologies. There are so-called venture companies that are engaged in the creation of new technologies in various fields, which pushes science forward and provides consumers with a more advanced product. For example, when Apple lost competition in the desktop PC market, it began producing mobile devices, producing smartphones and players, that is, it created an alternative market for itself, in which it became more successful than other companies. These products made the company world famous and opened up new opportunities. As a result, iPhone and iPod users paid attention to other Apple products and switched from PC to Mac. So, due to competition with Microsoft, the company found its own unique path and became the most valuable company in the world.

Or, for example, consider the auto industry. When Henry Ford improved conveyor technology, his company was able to produce 10 cars per day instead of 1, which significantly reduced the cost of the car. Labor has become several times cheaper per vehicle produced. This naturally increased the profit of the company and the entrepreneur.

Each of us encounters the beneficial consequences of competition between producers. We have before us a wide selection of various goods and services, the quality of which the manufacturer strives to improve in order to interest buyers. Moreover, during a price fight, sellers significantly reduce the price in order to also lure the buyer to their side. All this is very beneficial for the common consumer. For example, when choosing a phone for myself, I didn’t think about quality or design, since it’s almost on the same level everywhere, but I chose a phone that would have the most reasonable price. So, having examined theoretical arguments and specific examples, we are convinced that economic competition is necessary, and it is positive not only in relation to buyers, but even in relation to producers. Because thanks to it, a company can find the most suitable industry for development, and can also maximize profits.

economic competition market

The purpose of the lesson: to continue work on developing the foundations of economic literacy, to consider the position of a person in the system of economic relations. Objectives of the lesson: - Summarize, repeat and consolidate students’ knowledge on the topic “Modern Economics”, deepen students’ knowledge of economics; - Fostering civic engagement, the desire to purposefully overcome difficulties on the path of learning, and continue to develop the skills to work in a group; - Comprehensive development of the personality of high school students, strengthening the ideological orientation of cognitive interests in the light of the integration of humanitarian and technical disciplines, development of students’ emotions, interest in the subject. Lesson type: repeating - generalizing. Lesson form: lesson-game. Equipment: I.V. Lipsits. Economics. Moscow, "education", 2007. PC, projector. Advance task: the class is divided into groups, each group receives the task: to create a presentation “Company”. At the previous lesson, a terminological dictation is conducted, the results of which are necessary for the next lesson. DURING THE CLASSES:

Today in class we must repeat, generalize and consolidate knowledge on the topic “Modern Economics”. And today you will compete in each other’s interests. And the game will help us with this. Stages of the lesson "Terminal" "My years are growing..." "Lifebuoy" "First steps" "First steps" Memo to the consumer

“Lifebuoy” 10 minutes Imagine that your ship is shipwrecked. You have launched a life raft. In the emergency supply there are items: a flashlight, chess, mosquito repellent ointment, a laser disc, a bottle of mineral water. Items can only be transferred one at a time: 1 is the most important, 2 is less, etc. make a hierarchy, determining the place of each item. Comment on your choice.

We check the consumer reminder; Information is power. The more you know. The more confident you feel The more expensive a thing is, the more you need to know about it A person makes his own choice One of the main problems when buying a product is its safety It is important to know how to distinguish a fake from a branded product Be critical of advertising

In his statement, British economist E. Kannan touches on the importance of competition in the development of a market economy. The relevance of this problem lies in the fact that competition is an integral component of a market economy.

E. Kannan believed that economic competition in most cases aims to create rivalry between producers, rather than to ignite a war between them.

First, let's look at the key concepts of war and competition. War is a social phenomenon aimed at destroying an opponent. Competition is the same struggle, but a struggle for the best conditions for sales and purchases, as well as for access to economic resources. The main difference between competition and war is that in the process of war there is a desire to destroy an opponent, while competition involves a struggle to improve one’s enterprise, improve the qualities and conditions necessary for a favorable process of selling goods on the market. In economics, there are two types of competition: pure, which would fully allow enterprises to compete with each other, mutually developing; and imperfect, which includes monopolistic competition, monopoly and oligopoly. These same components partially or completely block the possibility of competition, which negatively affects both the price of the product produced and its quality.

As proof, I would like to give an example of the influence of competition on the improvement of brands. Consider brands such as Microsoft and Apple, which have been competing with each other for many years. I would like to note that from the very beginning of its development, Apple has been releasing products to the market with accurate calculations of their need during this particular period of time, and also has a strong marketing influence on customers, which of course affects demand. In this regard, Microsoft is inferior to its rival, which in turn provides it with some motivation to eliminate the shortcomings that it carries within itself. A similar influence can be seen using the opposite example. This is where competition manifests itself, which leads to mutual assistance in the prosperity of both brands.

I’ll take the second example from the media. A few months ago, an article was published that the iPhone 7 Plus smartphone had dropped in price, which led to competition in the market. This rivalry between smartphone companies has in turn led to price cuts not only for the iPhone 7 Plus, but also for other smartphones.

Based on the above, I want to conclude that only by competing with each other can enterprises develop in a positive direction (both for the benefit of the buyer and for the benefit of themselves). Rivalry between enterprises, i.e. competition is not a war, it is, on the contrary, some kind of assistance in the implementation and development of your company, your product.

“Economic competition is not war, but competition in each other’s interests” ( E. Kennan )

The statement I have chosen reveals the essence and significance of such an important regulator in a market economy as economic competition. Not a single market system in many countries of the world can do without competition, because it is an essential condition for the healthy functioning of the market and satisfying the needs of customers with the best price-quality ratio.

British economist Edwin Kennan believes that “Economic competition is not war, but competition in each other’s interests.” Thus, the author tries to prove that competition is not cruelty or something immoral, but on the contrary, competition is needed by the market and is even useful for the producers themselves. After all, thanks to competition, sellers try to improve the quality of products in order to attract buyers. Consequently, they invest in the development of science and technology, thereby ensuring progressive trends in the development of society. I agree with the author's opinion and believe that the role of competition in a market economy is great and that it contributes to healthy interaction.

Let us consider the very concept of “economic competition”. Competition is the rivalry between market participants for the best conditions for the production, purchase and sale of services and goods. Competition is a natural phenomenon. It is generated by private property, the complete economic isolation of each owner of goods of a certain type, the dependence of the position of sellers and buyers on the market price, which dictates the rules of transactions to all participants.

Free market competition has two types: individual and mass competition. The first type is capable of changing only the individual price of a product belonging to one owner, while the second leads to a change in the overall market price. Free competition in all forms is conducted by relatively peaceful methods. It comes down to the economic suppression of a rival (his ruin) mainly through the method of open price competition (price cutting).

Massive competition leads to the following consequences. Firstly, to establish an equilibrium market price, thereby regulating surplus or shortage of goods. Secondly, competition sets a common price for homogeneous products of the same quality. Thirdly, competition stimulates scientific and technological progress. Since the manufacturer, trying to spend less resources per unit of production, introduces new equipment and technologies, various ways to use resources economically. And finally, competition strengthens the socio-economic stratification of market actors. Small enterprises do not withstand the severe test of strength and go bankrupt. Competition tends to deepen inequality, and then the gap between small and large owners.

Let's give specific examples. In the IT products market, investors invest in the development of new technologies. There are so-called venture companies that are engaged in the creation of new technologies in various fields, which pushes science forward and provides consumers with a more advanced product. For example, when Apple lost competition in the desktop PC market, it began producing mobile devices, producing smartphones and players, that is, it created an alternative market for itself, in which it became more successful than other companies. These products made the company world famous and opened up new opportunities. As a result, iPhone and iPod users paid attention to other Apple products and switched from PC to Mac. So, due to competition with Microsoft, the company found its own unique path and became the most valuable company in the world.

Or, for example, consider the auto industry. When Henry Ford improved conveyor technology, his company was able to produce 10 cars a day instead of 1, which significantly reduced the cost of the car. Labor has become several times cheaper per 1 car produced. This naturally increased the profit of the company and the entrepreneur.

Each of us has experienced the beneficial effects of competition between manufacturers. We are faced with a wide selection of different goods and services, the quality of which the manufacturer is trying to improve in order to attract buyers. Moreover, during a price fight, sellers significantly reduce prices in order to also lure the buyer to their side. All this is very beneficial for the common consumer. For example, when choosing a smartphone for myself, I did not think about quality or design, since it is almost on the same level everywhere, but I chose a smartphone so that the price was most reasonable.

So, having considered theoretical arguments and specific examples, we are convinced that economic competition is necessary and it is positive not only in relation to buyers, but even in relation to producers, since thanks to it the company can find the most suitable industry for development, as well as can maximize profits.

Economic freedom

“Economic freedom is the freedom of any activity, including the right to choose and the associated risk and responsibility” ( F. von Hayek )

The statement I have chosen reveals the essence of economic freedom and its role as the basis of economic activity. Economic freedom seems to be the fundamental basis for the development of a market economy. In modern Russia, the foundations of a market economy began to take shape recently, so it is especially important for us to understand the basic signs and features of the market.

The Austrian economist and philosopher Friedrich von Hayek defines economic freedom as “freedom of any activity, including the right to choose and the associated risk and responsibility.” I fully share this point of view, since indeed any freedom, including economic freedom, is associated with the concept of choice and responsibility.

A number of theoretical arguments can be cited to support this point of view. Modern economists define it as an opportunity for business entities to choose forms of ownership and areas of application of their abilities, knowledge, capabilities, profession, methods of income distribution, and consumption of material goods. Just like freedom in the broad sense of the word, philosophers consider economic freedom to be one of the basic values, despite the fact that it covers only the material side of life. Economic freedom manifests itself in both producer freedom and consumer freedom. The producer has the right to independently decide how, in what volumes and what to produce, and the consumer is free to determine how, what and in what volumes to purchase and consume. That is, the manufacturer is free to determine at his own risk what and how to bring to the market, and the consumer finds himself in the same conditions.

So, as already noted, such a concept as economic freedom can only be used in the context of talking about a market-type economy. The market economy is formed as a result of the industrial revolution and goes side by side with the capitalist system. It is based on the initiative and entrepreneurship of the manufacturer himself, which is appreciated by the consumer. In other words, a market economy is characterized by the fact that demand determines supply, that is, market variability depends on the consumer, and the manufacturer focuses on his interests. A market economy is completely built on the balance of supply and demand, and as a result, prices are formed. And since this balance is extremely unstable, the market economy is cyclical in nature.

Also, economic freedom is defined by such a concept as private property, which is fully revealed in a market economy. This concept is the basis of human freedom in society, since by disposing of his property, a person recognizes himself as a bearer of rights.

In addition to theoretical arguments, specific examples can be given. First, the economic freedom of the manufacturer can be illustrated by the example of Henry Ford, who, using this right, introduced a completely new approach to the labor organization system. By doing so, he used his freedom to decide how to produce. He took a risk, took responsibility for a not-so-traditional decision, but his risk paid off.

Secondly, economic freedom can be demonstrated by the example of people purchasing so-called luxury goods: expensive jewelry, collectible vintage cars, works of art. It is unlikely that these things can be called practical or “necessary in the household.” But by purchasing them, people realize their economic freedom, managing their funds as they see fit. And, of course, by making such a choice, they take on a share of responsibility and risk based, for example, on the possible loss of value of these items.

And finally, as an example, we can recall the story of Mark Zuckerberg, the creator of the global social network Facebook. One day this man decided to take a risk, bringing to life a seemingly not particularly promising idea, but people accepted it. Thus, his risk paid off and he achieved incredible success.

I can give my family as an example from personal experience. Just like in any other family, in our family the economic freedom of the consumer is realized through the choice of consumed goods. That is, we decide for ourselves which product to prefer, trust advertising or our own opinion, and what criteria to base our choice on (price, quality, practicality). But at the same time, preferring one product (or service) to another, a certain share of responsibility for the choice we make falls on our shoulders.

Thus, being a value for human society, economic freedom, like any other, presupposes the exercise of choice and the resulting shares of responsibility and risk.