Page 7 - Azerbaijan State University of Economics

Sh.G. Askerov, A.Sh.Askerov: Econophysical analysis of the relationship between monopoly
and competition

p.17-543], and its output characteristics differ significantly from the output
characteristics of individual independent producers on the market.
The increase in the quantity of production per unit time (bо) with duopoly can
be represented by the following formula:
b д = b м + α t (2)
Here, b д, b м , respectively, are the angular coefficients of a duopoly and pure
monopolistic firm; α is a constant characterizing progress. According to the formula
(2), progress can be defined as a quantity numerically equal to the change in b per
unit time.
In the physics section of "Mechanics," we used this formula when we
determined the speed of the alternating motion at any time:
v t = v 0 + at (2')
Where v t is the velocity at time t, and v 0 is the velocity at the time of the
reference, and a is the acceleration.
If we take formula (2) into account in formula (1), we can get that İ is
nonlinearly time-dependent. Even with perfect competition (many firms) and an
identical technology, the amount of output per unit time proportionally increases the
square of time, which leads to the emergence of progress. In such conditions there is
no need for the development of science, it is sufficient to have a high level of
university education and a legal field for competition. Some countries which belong
to so-called emerging economies often choose this path of development.
Another factor that strongly influences progress is technology [Şahlar Əsgərov,
2016]. It is well known that technology depends on the level of science. The need for
technological development leads to a greater need for science. For this reason, in
developed countries, science spends a lot of money. The intellectual path is their
characteristic development: science-technology-progress.
The relationship between the change in the level of technology (ΔT) and
science (E) in a certain time interval Δt can be represented in the following form:
ΔТ = к 1Е Δt (4)
Where k1 is the coefficient of proportionality. Figure 3 shows the time
dependence of the growth of production of goods by competing firms using different
technologies. The graph shows the case where each newly created company uses
more advanced technology for economic growth.

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