Ex.8. Combine two parts logically to make complete sentences.
Date: 2015-10-07; view: 511.
Ex.7. Fill in the gaps with appropriate prepositions or adverbs.
1. Market structure is the key element that determines the behaviour firms in the market
and the outcome that will be produced the market.
2. One way considering the market structure is to talk the conditions that exist the market.
3. A situation in which firms act as price takers results the circumstances that exist the
markets.
4. No firm can have any significant role setting prices, so all firms must take the market price as given.
5. A firm can sell all the output it wants the going price.
6. Whenever economists discuss the workings the market, typically there is a focus the interaction supply and demand.
7. This basic model starts and generally is based the type situation present a perfectly competitive market.
8. For a monopoly firm, their behaviour is one a price maker and means that the firm has market power, or control the market price.
9. Control the market price arises the peculiar circumstances which the monopolist operates.
10. Unlike what we see the perfectly competitive market, there is no distinction to be made the activities the market level and the firm level; they are one the same.
| A monopoly exists when a single provider | a | economies of scale are sufficient for the firm to be a natural monopoly. | |
| A firm is a natural monopoly if it is able to serve the entire market demand at | b | as economies of scope and cost subadditivity come into play. | |
| If the monopoly firm serves a single market, then | c | products jointly than for multiple firms to provide the products separately. | |
| Economies of scale imply that the firm's average cost | d | a lower cost than any combination of two or more smaller, more specialized firms. | |
| If the firm is a monopoly in several markets, more complex cost concepts, such | e | unrecoverable if the operator decides to exit the market. | |
| Economies of scope exist when it is less | f | firm can serve the market and |
| costly for a single firm to provide two or more | receive non-negative profits. | ||
| Cost subadditivity exists when a single firm is able to satisfy the entire market demand(s) for its product(s) at a | g | likely for firms to enter the market. | |
| A firm is a natural monopoly in a market if no more than one | h | declines as the firm increases output. | |
| Sometimes capital costs constitute a sunk cost, which means the cost is | i | serves the entire market demand. | |
| Sunk costs are a barrier to entry, which means that they make it less | j | lower cost than two or more smaller, more specialized firms. |
| <== previous lecture | | | next lecture ==> |
| Ex.4. Match the words on the left with the definitions on the right. | | | Ex.9. Look through the text again and replace the words/phrases in italics with similar ones. |