Ex.4. Match the words on the left with the definitions on the right.
Date: 2015-10-07; view: 958.
| competition | a | Unique price at which buyers and sellers agree to trade in an open market at a particular time. | |
| economies of scale | b | Market situation midway between the extremes of perfect competition and monopoly, and |
| displaying features of the both. | |||
| homogeneous products | c | A market - such as a company or group of consumers - that is not significant enough to influence the price of a good or service. | |
| market power | d | Market situation between, and much more common than, perfect competition (having many suppliers) and monopoly (having only one supplier). | |
| market price | e | Products that vie with each other in a market but which (from the consumer's viewpoint) have little or no differentiation in terms of features, benefits, or quality and are, therefore, forced to compete on price or availability. | |
| market structure | f | A monopoly or a firm within monopolistic competition that has the power to influence the price it charges as the good it produces does not have perfect substitutes. | |
| Monopolistic Competition | g | Money that is made in a business, through investing, etc., after all the costs and expenses are paid : a financial gain. | |
| Monopoly | h | The reduction in long-run average and marginal costs arising from an increase in size of an operating unit (a factory or plant, for example). | |
| Oligopoly | i | The theoretical free-market situation in which the following conditions are met: (1) buyers and sellers are too numerous and too small to have any degree of individual control over prices, (2) all buyers and sellers seek to maximize their profit (income), (3) buyers and seller can freely enter or leave the market, (4) all buyers and sellers have access to information regarding availability, prices, and quality of goods being traded, and (5) all goods of a particular nature are homogeneous, hence substitutable for one another. | |
| output | j | Legislation enacted by the federal and various state go vernments to regulate trade and commerce by preventi ng unlawful restraints, price- fixing, and monopolies; to promote competition; and t o encourage the production of quality goods and servi ces at the lowest prices, withthe primary goal of safeg uarding public welfare by ensuring that consumer dem ands will be met by the manufacture and sale of goods atreasonable prices. | |
| Perfect Competition | k | Rivalry in which every seller tries to get what other sellers are seeking at the same time: sales, profit, and market share by offering the |
| best practicable combination of price, quality, and service. | |||
| price maker | l | The interconnected characteristics of a market, such as the number and relative strength of buyers and sellers and degree of collusion among them, level and forms of competition, extent of product differentiation, and ease of entry into and exit from the market. | |
| price taker | mThe amount of energy, work, goods, or services produced by a machine, factory, company, or an individual in a period. | ||
| profit | n | Extent to which a firm can influence the price of an item by exercising control over its demand, supply, or both. | |
| antitrust law | o | Market situation where one producer (or a group of producers acting in concert) controls supply of a good or service, and where the entry of new producers is prevented or highly restricted. |
Ex.5. Make up verb+noun collocations (there may be several variants).
to determine to harm
to have
to maintain to make
to maximize
to predict to restrict to sell
to share
to take
to understand
the behaviour the consumer
an important effect control
decisions influence
market power the market price output
profit
quantity relationship
Ex.6. Choose an appropriate word or phrase to complete the following sentences.Interaction, profit, behavior, firms, market, restrict, collusion, relevant, price, picture, competition.
1. Unlike what we see in the perfectly competitive market, in monopoly there is no distinction to be made between the activities at the … level and at the firm level; they are one in the same.
2. There are many different ideas that have been developed to attempt to understand and
predict the … of firms in oligopoly markets, but none of them is a general model.
3. The central feature here is that for a monopoly firm, their behavior is one of a … maker.
4. When the conditions necessary to have a perfectly competitive market do not hold, then
other market structures become … .
5. Taken together, the factors provide a useful … of a market, revealing how it is likely work
and the results that one would observe in this market.
6. Whenever economists discuss the workings of the market, typically there is a focus on the
… of supply and demand.
7. Doing this in a market where there is but a single firm yields the situation depicted here:
as compared to what we would observe in a competitive market, the monopolist chooses to
… output, resulting in a higher price, and as a consequence, a higher level of … .
8. And that's the catch of monopolistic competition: many buyers, many sellers, almost same
product but different branding and fierce … .
9. Both competitive and monopoly markets yield clear results in terms of the behavior of buyers and sellers, the price that will result and the nature of the interaction between … .
10. In general, economists refer to cooperative interaction as … , or alternatively, as the
formation of a cartel.
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| Ex.3. Give three forms of the following verbs. Find the sentences with these verbs in the text. | | | Ex.8. Combine two parts logically to make complete sentences. |