Page 6 - Azerbaijan State University of Economics

THE JOURNAL OF ECONOMIC SCIENCES: THEORY AND PRACTICE, V.74, # 1, 2017, pp. 4-9

conditions of perfect (mm straight line) and imperfect monopoly (1-2 broken lines),
more precisely in the case of duopoly [3]. As it is easy to see, the presence of a
second independent producer of identical goods (dd direct) in the market causes
competition and the dependence İ (t) is transformed from a straight line into a
broken line. As new independent producers of goods (oo lines) appear on the
market, competition will increase, and the number of broken lines will also increase
(1-2-3). In economic theory, this case is called oligopoly [В.Д. Камаева, М.2010].
In the case of oligopoly, the angular coefficient b0, respectively, will increase as the
number of firms increase.

Output

volume
b ос > b оb > b ом
3
b о

2

B D

M
1
b м D
1 O

м D O Time

Fig. 2. Dependence of the volume of goods / services on time in duopolistic
environment (aa and bb lines).

The parallelity of the lines mm, dd and oo in Fig. 2 means that the
technologies used in the production of goods by competing firms are at the same
level and, as can be seen from the graph, as the competitors grow, the volume of

output produced per unit time b о > b д > b м .
As the oligopoly is created, the angular coefficient b0 also increases, as a result of
which İ (t) dependence takes the form of a broken line (1-2-3). Thus, in the
transition from an absolute monopoly to an imperfect monopoly (oligopoly), the
system becomes more complex, and its output characteristics are nonlinearly time-
dependent. The transition from a linear characteristic to a nonlinear one means that
the system obeys the theory of complex systems [Лоскутов А.Ю., Михайлов А.С.,
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