CHINESE consumers are caught up in a power play - quite lit- erally. When it comes to selecting an electricity supplier, choic- es are limited to the State Grid Corp. in the north and China Southern Power Grid in the ...CHINESE consumers are caught up in a power play - quite lit- erally. When it comes to selecting an electricity supplier, choic- es are limited to the State Grid Corp. in the north and China Southern Power Grid in the south. Monopoly of the industry has long been the status quo in China, but now there are signs that the situation is changing.展开更多
AFTER infant formula manufacturers announced a price cut in August, 29-year-old Wang Dong decided to postpone buying a new car, The announcement to slash prices in China by up to 20 percent was made by six milk powder...AFTER infant formula manufacturers announced a price cut in August, 29-year-old Wang Dong decided to postpone buying a new car, The announcement to slash prices in China by up to 20 percent was made by six milk powder companies soon after the country's economic planner, the Na- tional Development and Reform Commission (NDRC) unveiled an antitrust probe. The probe's price-slash- ing effect boosted Wang's confidence that a recently launched investigation into the country's auto sector would have similar results.展开更多
China’s Anti-Monopoly Law has been in effect for more than one year, but court, legislative and law enforcement efforts are still needed to clear up unfair
Prior reforms would be implemented in three monopolized sectors—the railway,power and salt industries At a national conference on eco- nomic reform held in Wuhan,Hubei Province,on May 6,six priority areas were stress...Prior reforms would be implemented in three monopolized sectors—the railway,power and salt industries At a national conference on eco- nomic reform held in Wuhan,Hubei Province,on May 6,six priority areas were stressed for economic reform,namely,state-owned enterprises, essential production factors,rural areas, society,foreign-related sectors and the mod-展开更多
Since the beginning of European integration,the European Community has been committed to building an internal single market.Economically,it has been encouraging free competition,combating monopolies,and cautiously usi...Since the beginning of European integration,the European Community has been committed to building an internal single market.Economically,it has been encouraging free competition,combating monopolies,and cautiously using industrial policies.展开更多
China is by far the largest producer of tobacco products in the world. As a big tax source, tobacco industry brings about 10%of China's annual income.At present tobacco industry is under the administrative monopol...China is by far the largest producer of tobacco products in the world. As a big tax source, tobacco industry brings about 10%of China's annual income.At present tobacco industry is under the administrative monopoly management in China. The nation's policy and management mechanism greatly influence the competition structure of tobbacco industry. Due to the double character of tobacco, the country generally imposes a high tax and limits total product output in order to control the tobacco market. Therefore, the price signal of tobacco market is distorted and to a large extent the competition of the industry is far from a free one. The cigarette production is in a multi element competition style within the nation's planning system. In other words, administrative monopoly and over competition exist simultaneously in China's tobacco industry. The country predetermines the output quota of each cigarette manufacturing enterprise and the actual production outputs of these enterprises could be adjusted through the quota trades among them. The competition in tobacco industry is mainly represented in 3 modes, i.e.production output competition based on quota trades, value added competition in producing and marketing, and the niche market competition based on product classification.展开更多
On the basis of the research framework of the new economic geography, this paper conducts an empirical study of the effects of administrative monopoly and market allocation on the manufacturing industry geographical c...On the basis of the research framework of the new economic geography, this paper conducts an empirical study of the effects of administrative monopoly and market allocation on the manufacturing industry geographical cluster in the central region. The results indicate that both administrative monopoly and market allocation have significant influence on the development of the manufacturing industry cluster in the central region, but the influence of the former is bigger than that of the latter. The administrative monopoly has multiple influences on the manufacturing industry cluster in the central region, while the traditional administrative monopoly measures represented by taxation go against the promotion of industry cluster. In addition, for the changes of geographical clusters of different types of manufacturing industry,the market allocation factors playing their roles are also different. As for the geographical clusters of high level clustering industries, the effect of the money external factor among the market allocation factors is the most significant. As for the clustering industries of middle level, the effect of the scale external factor is the most significant. The effects of knowledge externality on geographical cluster of manufacturing industry in the central region are not significant.展开更多
Deterministic chaos refers to an irregular or chaotic motion that is generated by nonlinear systems. The chaotic behavior is not to quantum-mechanical-like uncertainty. Chaos theory is used to prove that erratic and c...Deterministic chaos refers to an irregular or chaotic motion that is generated by nonlinear systems. The chaotic behavior is not to quantum-mechanical-like uncertainty. Chaos theory is used to prove that erratic and chaotic fluctuations can indeed arise in completely deterministic models. Chaotic systems exhibit a sensitive dependence on initial conditions. Seemingly insignificant changes in the initial conditions produce large differences in outcomes. To maximize profit, the monopolist must first determine its costs and the characteristics of market demand. Given this knowledge, the monopoly firm must then decide how much to produce. The monopoly firm can determine price, and the quantity it will sell at that price follows from the market demand curve. The basic aim of this paper is to construct a relatively simple chaotic growth model of the monopoly price that is capable of generating stable equilibria, cycles, or chaos. A key hypothesis of this work is based on the idea that the coefficient,π=[m(a-1)(e-1)^-eb]plays a crucial role in explaining local stability of the monopoly price, where,b^the coefficient of the marginal cost function of the monopoly firm, m--the coefficient of the inverse demand function, e--the coefficient of the price elasticity of the monopoly demand, a--the coefficient.展开更多
Resale price maintenance(RPM) exerts both positive and negative influences on the market competition.Such duality and the consequent difficulties in presenting evidence have often become highly controversial issues in...Resale price maintenance(RPM) exerts both positive and negative influences on the market competition.Such duality and the consequent difficulties in presenting evidence have often become highly controversial issues in anti-monopoly law enforcement.We found that in reality,effects of jump-dealing and RPM can offset each other.This paper systematically proposed the offsetting theory of jump-dealing and RPM,and analyzed their policy implications for anti price monopoly,thus providing some simple principles and methods to the law enforcement against vertical price monopoly.This will not only reduce the possible "superfluous actions " in current law enforcement,but also help avoid compounded mistakes due to difficulties of enforcement.展开更多
Natural monopoly,because of its spontaneous or natural characteristics, must have some mysterious causes of reasonableness.Thus,the regulations to its efficiency loss would have a different way compared to other monop...Natural monopoly,because of its spontaneous or natural characteristics, must have some mysterious causes of reasonableness.Thus,the regulations to its efficiency loss would have a different way compared to other monopolies. That the characteristics of natural monopoly,in the case of water industry, are that the infrastructure investments are very large,most of which are used to build the transportation system? The webs for transporting their products to their customers,and the products are identity goods or services.By examining the characteristics of natural monopoly,this paper proposed away to break upand remodel the industry of“natural monopoly”.The main clue of remodeling is that the governments,who represent the public and who have the power to control over public resources,should build and maintain a public web platform for the goods’ transportation uses, and break up the barrier ofthe entry so as to produce a market-oriented competitive structure.The running modeland the condition of remodeling are put forward and the cost-revenue analysis of the operation is briefly under consideration.展开更多
The platform economy has become a new engine and leading force for China's economic development.With the rapid development of super internet platforms, this field has drawn growing attention from attention of anti...The platform economy has become a new engine and leading force for China's economic development.With the rapid development of super internet platforms, this field has drawn growing attention from attention of anti-monopoly authorities.The technical attributes and business characteristics of the platform economy endow those platforms with a "natural" monopoly advantage, and the quasi-public attributes of the internet platforms require anti-monopoly authorities to bear more monopoly governance responsibilities.This paper analyzes the difficulties in monopoly governance of the platform economy from the perspectives of anti-monopoly legislation, government regulation and global monopoly governance, and proposes several solutions and suggestions to improve the effectiveness of anti-monopoly governance and promote healthy development of the digital economic ecology.The solutions and suggestions include: focusing on building up technology-based regulatory capabilities, accelerating the legislation on data protection of data, and developing an anti-monopoly system based on the principle of giving priority to innovation.展开更多
After entering the new century,the inter-industry wage differential in China is expanding continually.The regression-based Shapley-value decomposition shows that such factors as human capital,ownership system,capital ...After entering the new century,the inter-industry wage differential in China is expanding continually.The regression-based Shapley-value decomposition shows that such factors as human capital,ownership system,capital investment and technology have significant influence on the inter-industry income inequality;of which the contribution of human capital to the differential is about 45%,and the ownership system is more than 20%.Therefore,such administrative measures as equal education,increasing education returns,opening the labor market of monopoly industry,and carrying out labor negotiation system can effectively settle the problem of inter-industry wage differentials.展开更多
This article briefly and historically reviews the polices of the Organization of Petroleum Exporting Countries (OPEC) and analyzes the factors that facilitate or hinder OPEC's monopoly in the crude oil market. The ...This article briefly and historically reviews the polices of the Organization of Petroleum Exporting Countries (OPEC) and analyzes the factors that facilitate or hinder OPEC's monopoly in the crude oil market. The industrial concentration ratio is chosen to measure OPEC's monopoly power based on the data from 1986 to 2004. It is concluded that OPEC possesses a long-standing cartel foundation and a rather strong monopoly in the world crude oil market. At the same time, there are unstable factors that influence and even weaken OPEC's monopoly.展开更多
When you look for gas stations to refill yourcar’s tank in China,you will probably find only twobrands:China National Petroleum Corp(CNPC)and China Petroleum and Chemical Corp(SinopecGroup).But there will soon be a n...When you look for gas stations to refill yourcar’s tank in China,you will probably find only twobrands:China National Petroleum Corp(CNPC)and China Petroleum and Chemical Corp(SinopecGroup).But there will soon be a new player in themarket:"Shide."展开更多
In the classical economic prevalent opinions, economic efficiency is in direct proportion to the level of the market competitiveness and perfect competitive market has the highest efficiency. However, in this paper, i...In the classical economic prevalent opinions, economic efficiency is in direct proportion to the level of the market competitiveness and perfect competitive market has the highest efficiency. However, in this paper, it will be approved the viewpoint that perfect competitive market owns highest efficiency is not existent in practical economy, even on the theoretic level, uncertainty exits. So the perfect objective model the government oolicv should oursue is coexistence of the effective competition and effective monopoly.展开更多
Based on the study of enterprise managerial corruption in Chinese SOEs, this paper points out the new characteristics of managerial corruption in Chinese SOEs:administrative monopoly has become increasingly common, wh...Based on the study of enterprise managerial corruption in Chinese SOEs, this paper points out the new characteristics of managerial corruption in Chinese SOEs:administrative monopoly has become increasingly common, while corruption for personal gains by SOE leaders hits become less and less frequent.This means the reform of SOEs has entered a new stage in which the core problem is how to deal with administrative monopoly.展开更多
Inter-industry wage differentials in China, measured in terms of average employment earnings by industry, are significant and have been increasing since 1988. The coefficient of variables measuring inter-industry aver...Inter-industry wage differentials in China, measured in terms of average employment earnings by industry, are significant and have been increasing since 1988. The coefficient of variables measuring inter-industry average earning differentials is apparently on the rise along with the subdivision of industry. A theoretical analysis of the labour market indicates that inter-industry wage differentials are mainly due to human capital variation among the employees of different industries and the likelihood of monopoly rent sharing. An empirical study finds that employee characteristics such as sex, age and education can only explain 60 percent of CVs in the period 2003 to 2005 and the rest may be due to the effect of monopoly rent sharing in certain industries. A residual analysis of wage equation proves that the monopoly industries of technology or knowledge share a small proportion of rents with employment, whereas non-competitive monopoly industries generally garner an abnormal share of rents, as much as half of their above-average earnings for their industries. Such abnormal rents and benefits are mainly the result of low cost natural resources, the use of state-owned assets, the misappropriation of consumer welfare and the seeking of fiscal or social subsidy for cost inflation. So, China should deal with the non-competitive monopoly industries by reforming their monopoly power and primary social distribution mechanism to structure a fair income distribution order.展开更多
This study attempts to investigate the relationship between monopoly and competition and the philosophy of progress,using the methods,models,and terms from physics.The term“progress”is a newly adopted term and is de...This study attempts to investigate the relationship between monopoly and competition and the philosophy of progress,using the methods,models,and terms from physics.The term“progress”is a newly adopted term and is defined as the value of an increase in the production rate per unit of time.It is shown that to achieve progress,it is necessary to increase the production on a non-linear basis over time.Therefore,it is enough to have many firms that interact with each other under the influence of“market forces”.It is important to have a high level of university education,a legal environment for competition and indestructible antitrust laws.Even without strong science,you can make progress by acquiring technology and creating conditions for competition in the market.A factor that strongly influences progress,of course,is technology.For the development of technology,there is a great need for science.Science is a very powerful factor that affects the non-linear change in the economic development.It is shown that during the transition period from an absolute monopoly to an imperfect monopoly the system becomes more complex,and its output characteristics become non-linear as a function of time.It was found that 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 with the creation of similar firms,competition,as the natural market process,begins between them.展开更多
The article considers the econophysical analysis of the relationship between monopoly and competition by using the methods, terms of physics. And it was investigated the philosophy of progress. It has been shown that ...The article considers the econophysical analysis of the relationship between monopoly and competition by using the methods, terms of physics. And it was investigated the philosophy of progress. It has been shown that in the transition from absolute monopoly to imperfect monopoly, the system becomes more complex, and its output characteristics depend on time, because monopoly is a natural, competitive is derivative process. Competition is created as a result of the interaction of at least two ~monopoly firms" through the ~market field" that they create to increase the production which is necessary of non-linear products over time. To do this, it is sufficient to have a multitude of firms interacting with each other under the influence force of ~market field". To create the necessary conditions, it is sufficient to have a high level of university education and a legal field for competition and unbreakable antitrust legislation. By acquiring technology and creating conditions for competition in the market, it is possible to achieve progress even without having a strong science. The term ~progress" has received a new content and is defined as the value of a numerically equal increase in the rate of production per unit time or production per squared time. It has been shown that 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 analogical firms were created, competition between firms begins展开更多
文摘CHINESE consumers are caught up in a power play - quite lit- erally. When it comes to selecting an electricity supplier, choic- es are limited to the State Grid Corp. in the north and China Southern Power Grid in the south. Monopoly of the industry has long been the status quo in China, but now there are signs that the situation is changing.
文摘AFTER infant formula manufacturers announced a price cut in August, 29-year-old Wang Dong decided to postpone buying a new car, The announcement to slash prices in China by up to 20 percent was made by six milk powder companies soon after the country's economic planner, the Na- tional Development and Reform Commission (NDRC) unveiled an antitrust probe. The probe's price-slash- ing effect boosted Wang's confidence that a recently launched investigation into the country's auto sector would have similar results.
文摘China’s Anti-Monopoly Law has been in effect for more than one year, but court, legislative and law enforcement efforts are still needed to clear up unfair
文摘Prior reforms would be implemented in three monopolized sectors—the railway,power and salt industries At a national conference on eco- nomic reform held in Wuhan,Hubei Province,on May 6,six priority areas were stressed for economic reform,namely,state-owned enterprises, essential production factors,rural areas, society,foreign-related sectors and the mod-
文摘Since the beginning of European integration,the European Community has been committed to building an internal single market.Economically,it has been encouraging free competition,combating monopolies,and cautiously using industrial policies.
文摘China is by far the largest producer of tobacco products in the world. As a big tax source, tobacco industry brings about 10%of China's annual income.At present tobacco industry is under the administrative monopoly management in China. The nation's policy and management mechanism greatly influence the competition structure of tobbacco industry. Due to the double character of tobacco, the country generally imposes a high tax and limits total product output in order to control the tobacco market. Therefore, the price signal of tobacco market is distorted and to a large extent the competition of the industry is far from a free one. The cigarette production is in a multi element competition style within the nation's planning system. In other words, administrative monopoly and over competition exist simultaneously in China's tobacco industry. The country predetermines the output quota of each cigarette manufacturing enterprise and the actual production outputs of these enterprises could be adjusted through the quota trades among them. The competition in tobacco industry is mainly represented in 3 modes, i.e.production output competition based on quota trades, value added competition in producing and marketing, and the niche market competition based on product classification.
文摘On the basis of the research framework of the new economic geography, this paper conducts an empirical study of the effects of administrative monopoly and market allocation on the manufacturing industry geographical cluster in the central region. The results indicate that both administrative monopoly and market allocation have significant influence on the development of the manufacturing industry cluster in the central region, but the influence of the former is bigger than that of the latter. The administrative monopoly has multiple influences on the manufacturing industry cluster in the central region, while the traditional administrative monopoly measures represented by taxation go against the promotion of industry cluster. In addition, for the changes of geographical clusters of different types of manufacturing industry,the market allocation factors playing their roles are also different. As for the geographical clusters of high level clustering industries, the effect of the money external factor among the market allocation factors is the most significant. As for the clustering industries of middle level, the effect of the scale external factor is the most significant. The effects of knowledge externality on geographical cluster of manufacturing industry in the central region are not significant.
文摘Deterministic chaos refers to an irregular or chaotic motion that is generated by nonlinear systems. The chaotic behavior is not to quantum-mechanical-like uncertainty. Chaos theory is used to prove that erratic and chaotic fluctuations can indeed arise in completely deterministic models. Chaotic systems exhibit a sensitive dependence on initial conditions. Seemingly insignificant changes in the initial conditions produce large differences in outcomes. To maximize profit, the monopolist must first determine its costs and the characteristics of market demand. Given this knowledge, the monopoly firm must then decide how much to produce. The monopoly firm can determine price, and the quantity it will sell at that price follows from the market demand curve. The basic aim of this paper is to construct a relatively simple chaotic growth model of the monopoly price that is capable of generating stable equilibria, cycles, or chaos. A key hypothesis of this work is based on the idea that the coefficient,π=[m(a-1)(e-1)^-eb]plays a crucial role in explaining local stability of the monopoly price, where,b^the coefficient of the marginal cost function of the monopoly firm, m--the coefficient of the inverse demand function, e--the coefficient of the price elasticity of the monopoly demand, a--the coefficient.
基金phase-wise achievement of the project B-T-C Paradigm and Application of "Jump-dealing"(Project No.:71272190)funded by the National Natural Science Foundation of China,headed by Professor Yu Li,vice president of Tianjin University of Finance and Economics,director of Center for Economic Analysis of Law and Policy Evaluation and member of Expert Advisory Board of the State Council Anti-monopoly Commission of China
文摘Resale price maintenance(RPM) exerts both positive and negative influences on the market competition.Such duality and the consequent difficulties in presenting evidence have often become highly controversial issues in anti-monopoly law enforcement.We found that in reality,effects of jump-dealing and RPM can offset each other.This paper systematically proposed the offsetting theory of jump-dealing and RPM,and analyzed their policy implications for anti price monopoly,thus providing some simple principles and methods to the law enforcement against vertical price monopoly.This will not only reduce the possible "superfluous actions " in current law enforcement,but also help avoid compounded mistakes due to difficulties of enforcement.
文摘Natural monopoly,because of its spontaneous or natural characteristics, must have some mysterious causes of reasonableness.Thus,the regulations to its efficiency loss would have a different way compared to other monopolies. That the characteristics of natural monopoly,in the case of water industry, are that the infrastructure investments are very large,most of which are used to build the transportation system? The webs for transporting their products to their customers,and the products are identity goods or services.By examining the characteristics of natural monopoly,this paper proposed away to break upand remodel the industry of“natural monopoly”.The main clue of remodeling is that the governments,who represent the public and who have the power to control over public resources,should build and maintain a public web platform for the goods’ transportation uses, and break up the barrier ofthe entry so as to produce a market-oriented competitive structure.The running modeland the condition of remodeling are put forward and the cost-revenue analysis of the operation is briefly under consideration.
基金funded by Shanghai Municipal Philosophy and Social Science Planning Project(An Assessment of the Shanghai Practice of Modernizing the National Economic Governance System and Governance Capacity:An Analysis of the Evaluation System From the Perspective of Technological Evolution,Project No.2020BJB020)。
文摘The platform economy has become a new engine and leading force for China's economic development.With the rapid development of super internet platforms, this field has drawn growing attention from attention of anti-monopoly authorities.The technical attributes and business characteristics of the platform economy endow those platforms with a "natural" monopoly advantage, and the quasi-public attributes of the internet platforms require anti-monopoly authorities to bear more monopoly governance responsibilities.This paper analyzes the difficulties in monopoly governance of the platform economy from the perspectives of anti-monopoly legislation, government regulation and global monopoly governance, and proposes several solutions and suggestions to improve the effectiveness of anti-monopoly governance and promote healthy development of the digital economic ecology.The solutions and suggestions include: focusing on building up technology-based regulatory capabilities, accelerating the legislation on data protection of data, and developing an anti-monopoly system based on the principle of giving priority to innovation.
文摘After entering the new century,the inter-industry wage differential in China is expanding continually.The regression-based Shapley-value decomposition shows that such factors as human capital,ownership system,capital investment and technology have significant influence on the inter-industry income inequality;of which the contribution of human capital to the differential is about 45%,and the ownership system is more than 20%.Therefore,such administrative measures as equal education,increasing education returns,opening the labor market of monopoly industry,and carrying out labor negotiation system can effectively settle the problem of inter-industry wage differentials.
文摘This article briefly and historically reviews the polices of the Organization of Petroleum Exporting Countries (OPEC) and analyzes the factors that facilitate or hinder OPEC's monopoly in the crude oil market. The industrial concentration ratio is chosen to measure OPEC's monopoly power based on the data from 1986 to 2004. It is concluded that OPEC possesses a long-standing cartel foundation and a rather strong monopoly in the world crude oil market. At the same time, there are unstable factors that influence and even weaken OPEC's monopoly.
文摘When you look for gas stations to refill yourcar’s tank in China,you will probably find only twobrands:China National Petroleum Corp(CNPC)and China Petroleum and Chemical Corp(SinopecGroup).But there will soon be a new player in themarket:"Shide."
文摘In the classical economic prevalent opinions, economic efficiency is in direct proportion to the level of the market competitiveness and perfect competitive market has the highest efficiency. However, in this paper, it will be approved the viewpoint that perfect competitive market owns highest efficiency is not existent in practical economy, even on the theoretic level, uncertainty exits. So the perfect objective model the government oolicv should oursue is coexistence of the effective competition and effective monopoly.
文摘Based on the study of enterprise managerial corruption in Chinese SOEs, this paper points out the new characteristics of managerial corruption in Chinese SOEs:administrative monopoly has become increasingly common, while corruption for personal gains by SOE leaders hits become less and less frequent.This means the reform of SOEs has entered a new stage in which the core problem is how to deal with administrative monopoly.
基金funded by the National Philosophy and Social Science Innovation Centre of Economic ransition and Development of Nanjing University sponsored by the Ministry of Education of China
文摘Inter-industry wage differentials in China, measured in terms of average employment earnings by industry, are significant and have been increasing since 1988. The coefficient of variables measuring inter-industry average earning differentials is apparently on the rise along with the subdivision of industry. A theoretical analysis of the labour market indicates that inter-industry wage differentials are mainly due to human capital variation among the employees of different industries and the likelihood of monopoly rent sharing. An empirical study finds that employee characteristics such as sex, age and education can only explain 60 percent of CVs in the period 2003 to 2005 and the rest may be due to the effect of monopoly rent sharing in certain industries. A residual analysis of wage equation proves that the monopoly industries of technology or knowledge share a small proportion of rents with employment, whereas non-competitive monopoly industries generally garner an abnormal share of rents, as much as half of their above-average earnings for their industries. Such abnormal rents and benefits are mainly the result of low cost natural resources, the use of state-owned assets, the misappropriation of consumer welfare and the seeking of fiscal or social subsidy for cost inflation. So, China should deal with the non-competitive monopoly industries by reforming their monopoly power and primary social distribution mechanism to structure a fair income distribution order.
文摘This study attempts to investigate the relationship between monopoly and competition and the philosophy of progress,using the methods,models,and terms from physics.The term“progress”is a newly adopted term and is defined as the value of an increase in the production rate per unit of time.It is shown that to achieve progress,it is necessary to increase the production on a non-linear basis over time.Therefore,it is enough to have many firms that interact with each other under the influence of“market forces”.It is important to have a high level of university education,a legal environment for competition and indestructible antitrust laws.Even without strong science,you can make progress by acquiring technology and creating conditions for competition in the market.A factor that strongly influences progress,of course,is technology.For the development of technology,there is a great need for science.Science is a very powerful factor that affects the non-linear change in the economic development.It is shown that during the transition period from an absolute monopoly to an imperfect monopoly the system becomes more complex,and its output characteristics become non-linear as a function of time.It was found that 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 with the creation of similar firms,competition,as the natural market process,begins between them.
文摘The article considers the econophysical analysis of the relationship between monopoly and competition by using the methods, terms of physics. And it was investigated the philosophy of progress. It has been shown that in the transition from absolute monopoly to imperfect monopoly, the system becomes more complex, and its output characteristics depend on time, because monopoly is a natural, competitive is derivative process. Competition is created as a result of the interaction of at least two ~monopoly firms" through the ~market field" that they create to increase the production which is necessary of non-linear products over time. To do this, it is sufficient to have a multitude of firms interacting with each other under the influence force of ~market field". To create the necessary conditions, it is sufficient to have a high level of university education and a legal field for competition and unbreakable antitrust legislation. By acquiring technology and creating conditions for competition in the market, it is possible to achieve progress even without having a strong science. The term ~progress" has received a new content and is defined as the value of a numerically equal increase in the rate of production per unit time or production per squared time. It has been shown that 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 analogical firms were created, competition between firms begins