Page 105 - Azerbaijan State University of Economics

Nazim U. Hajiyev: Assessment stages of cyclical development of monopoly and
competition in terms of the reconstruction of Azerbaijan economy

the first half of XIX century a lot of restrictions were kept which left from

feudalism period of competition. It is enough to remember the restoration efforts of

archaic craftsmen workshop in Prussia. Even it is schematic enough to connect free

competition period with XIX century. Competition is only empowering in the

second half of XIX century in Russia (Subordination of economy and particularly

competition processes to regalement and keeping active intervention by

government). With this rule free competition existed in the short period of time in

a limited number of countries.

What is the reason to look competition leading in these countries as free one

in XIX centuries? Firstly attention is attracted by the main burdens as productive

forces and undeveloped economic relations that caused a lot of problems to

competition. Here, price competition coming up with efforts to defend and

expand their market share by decreasing the expenses and relatively lowing prices

plays an important role. Price competition itself determined flexibility of market

prices, rapid response of prices to demand and supply changes.

These specifications of free competition arebased on relatively low level

monopoly of production on leading sectors of industry. For example, the

average number of employees was 19 in manufacturing industry enterprises in

England in the middle of XIX century [Nikitin S.M. 1993 p. 51].The low level of

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