Značaj kontrole cijena prirodnih monopola za potrošače
Importance of Price Control of Natural Monopoly for Consumers

Summary/Abstract: By utilizing its power, State aims to restrict monopolistic processes and encourage competition, or to affect market structure or behavior of economic entities. Activity in the field of antimonopoly legislation that state implements has an old date, and is implemented, with resistance of certain subject, with varying success. The focus of our attention is the specifics of policies to control prices of natural monopolies, or its fraction, that are in the interest of the state and local communities. This activity is also present in most developed market economies, but they still have very actual aspect of creating general conditions for the development of competition and control of natural monopolies. At the level of a local community, prices have been formed at a level that is adjusted to the purchasing power of population, and to sustainable development of enterprises. This paper will present and the analysis of price forming in a free market, and in a case of monopoly, and it will be pointed to harmful effects of monopoly which express itself by reducing production and increasing prices. This imposes the necessity of state intervention, which aims to protect consumers.

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