Methodological aspects of research of monopolistic high price of goods

Abstract

Law on Protection of Competition prohibits economic entities from setting the monopolistic high price of goods. Studying this offense we should identify the dominant position of economic entities functioning in the markets and prove the constitution of the monopolistic high price of goods. Proving this offense we should use two criteria: comparative and costly. Comparative criterion let us analyze the actions of the economic entities in the monopolistic market and in the competitive market and determine the «fair» price of goods and the installed rate of profit taking into account the conditions of the goods’ competition that we could consider as «fair» for the monopolistic market. Using the costly criterion, we should set the price bigger than the amount of money that is necessary for production and sale of this goods and the required rate of profit. It should be pointed out that the absence of the comparable market in the competitive conditions does nоt mean the unfulfillment of the costly criterion, but it shows its inapplicability to this market.This article is devoted to research of the monopolistic high price of goods based on the analyses of the theory of setting prices for companies with monopolistic power and an amount of practical materials on this subject. The results of the research are the suggested methodological aspects that are necessary to follow analyzing the signs of the facts of the monopolistic high price of goods.