EXOGENOUS PRICES AND SPECIFIC TAX AS A FORM OD MONOPOLY REGULATION Cover Image

EGZOGENE CENE I SPECIFIČNI POREZ KAO OBLICI REGULACIJE MONOPOLA
EXOGENOUS PRICES AND SPECIFIC TAX AS A FORM OD MONOPOLY REGULATION

Author(s): Mehmed Meta, Almir Saiti
Subject(s): Economy, Micro-Economics
Published by: Интернационални Универзитет у Новом Пазару
Keywords: Monopoly; specific tax; equilibrium position; marginal income; marginal costs;

Summary/Abstract: Economic environment in which company tends to accomplish its mission and maximize profit can vary, from simple to the extremely complex and turbulent. Producers of a particular products can be one, a few or many. And customers can be in different number (one, a few or many). On the other hand, product which company produces and sells can be without close substitutes or with high expressed degree of substitutability with products of other companies. Therefore, the answer to the question, what quantity of products, company should produce and what price should sell its output, exactly at what quantity and price company maximizes its profit, presupposes clear definition of market environment in which transactions take place. The problem of monopoly has always attracted the attention of economic theorists and public authorities. Economic science have long ago pointed out different ways of abuse of economic power by the monopolistic companies and suggested measures for preventions. The aim of this paper is to show the economic implications of exogenous pricing and the introduction of the specific tax to the equilibrium position of monopolistic company, and the effects of the measures of monopoly regulation on social welfare.

  • Issue Year: 2017
  • Issue No: 11
  • Page Range: 1-15
  • Page Count: 15
  • Language: Bosnian
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