there are no close substitutes. The product of monopoly is unique in the sense that there are no good or close substitutes. From the point of view of the buyer it means that he has to buy a product from the monopolist or do without it, i.e. there are no the acceptable alternatives;
Thus, the competition is an indispensable condition of existence of the market. If it in fact, but not in a form is absent, there is no market also as a public form of economic relations. Competition existence - natural state of the market relations at which their subjects are induced to vigorous business activity. The problem of creation of conditions for its emergence and development is extremely important for economy of Belarus, transitional to the market. At its decision it is necessary to distinguish conditions of emergence of the competition and a condition of formation of the competitive environment.
the enterprises which offer the best production on quality or make it with smaller production expenses, earn reward in the form of profit (positive sanctions). It stimulates technical progress;
Price discrimination is most often applied in a services sector (doctors, lawyers, hotels, etc.), when rendering services in transportation of production; when selling goods which does not give in to redistribution from one market on another (transportation of perishable goods from one market on another).
Formation of the competitive environment is preceded formation of the market competition as that and collision of the private economic interests caused by property on production factors, a product and the income. The more than carriers and economic interests, the possibility of the full competition as systems of the relations between economically independent economic entities defining new ways of realization of the economic interests is more probable.
differentiation of products and services, that is support on the trademarks emphasizing uniqueness of goods and recognition by his buyers (for example, it is difficult to compete with unique properties of products of national crafts - Palekh, Gzhel. Emergence of numerous goods fakes emphasizes a practical neprevzoydennost of these trademarks);
Goods substitutes. Emergence of the goods which are effectively satisfying the same requirements, but in a bit different way can aggravate the competition. So, the enterprises which are letting out margarine which has competitive advantages can compete with producers of butter: it is a dietary product with the low level of cholesterol.
The interindustry competition is the competition between the businessmen occupied in various branches of production because of the favorable application of the capital, redistributions arrived, i.e. is conducted also fight for the consumer that it spent the income for purchase of production of this firm. As the rate of return is influenced by different factors, its size in various branches is various. However each businessman independently because where his capital is applied, seeks to get on it profit not smaller, than other businessmen. It leads to a modulation of the capitals from one branches in others: from branches with low rate of return in branch with high norm. During such movement of the capitals of rate of return of spheres of production are leveled by the competition in the uniform general rate of return representing an average from these various rates of return. The profit got on average norm on the advanced capital is called as average profit.
In modern conditions in labor markets not price competition since firms at employment pay attention not only to a salary, but also to qualification prevails. And considering that there is a process of complication of technologies, qualification gains serious value. Besides, the firms operating in the market possess sufficient financial opportunities that to reduce the price for rather long period of time, and respectively, it is more attractive to consumers against the competitors. And also considering that needs of consumers constantly grow, firms need to update and expand the range of products constantly.