Monopoly and Its Existence in Latvia

Endlessly in the market there is fight between the producers for more profitable producing and realization conditions and possibilities to earn. And that is what establishes the market competition type – perfect competition, monopoly and monopsony, oligopoly and oligopsony, monopolistic competition. Monopoly has its advantages and disadvantages, but it is important in what degree is the control of the state is involved in the monopoly enterprise action. Me as a participant of market – buyer of a product/service – I am interested that my rights, interests would be protected by buying a product or service which price as much as possible is closest to the equilibrium market price. As the disadvantages of monopoly are directly connected with public’s interests, there is potential danger to have too many monopolies in the market. In Latvia still there are large monopolies which very often cause critical discussions in the society and media. In this work I would like to find out and show how the topic Monopoly is seen in theory and how monopolies in Latvia are functioning.…