Page 9 - Azerbaijan State University of Economics

THE JOURNAL OF ECONOMIC SCIENCES: THEORY AND PRACTICE, V.71, # 1, 2014, pp. 4-25

materials/goods from one point to another within it. In this case, analysis of certain limited

market begins from transportation of loads in a region where the points of the enterprise are

located and this analysis may be expanded to cover other alternative transports (railway, river

transports) as well as to cover other regions possessing transport networks easily rendering

services of trucks/lorries offered by the enterprise. Such markets of byproducts may be important

for it to be chosen and analyzed. So that, if in these markets there are no offers by other

companies, then necessary measures for demonopolization of the enterprise will be vitally

important to create a market for other companies to enter (in order to join other domains of

business or to compete with sale of the end products of the enterprise).

Before passing to the next stage of analysis, it is necessary to pay attention to practical and

conceptual aspects of marking out limited markets for analyzing purposes of demonopolization

–dependence on relative prices of products as well as on other prices, of types of products being

identical substitutes of goods sold by the enterprise. For example, when low-end computers are

offered for prices much higher than cost of production, mean-end ones may directly substitute

them; but when the low-end computers are offered for prices closer to cost of their production,

mean-end ones will not be able to act as alternatives in the market. As a result, competition

degree of low-end computers influencing on prices will change the size of the given limited

market. In this case, failure of demonopolization of only seller of low-end computers offered

with high prices would be a serious mistake (taking into account existence of a sufficiently high

competition by mean-end computers).

One of solutions for conceptual issue of a closed sectorial limited market is to convince

customers to prefer substitutes with current prices based on comparison of functional quality

indicators and production expenses. To this end, other products of the limited market to which

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