Ex.9. Look through the text again and replace the words/phrases in italics with similar ones.

Date: 2015-10-07; view: 459.

1. These are the main elements that determine the behavior of firms in the market and the

outcome that will be produced by the market.

2. Three of these are of significant interest to us, both from the standpoint of understanding the way that different types of markets work, but also how this relates to interactions that

arise within the legal system.

3. As they apply to the competitive market, these conditions are: many buyers and sellers, no

terms on entry or exit etc.

4. This is the essence of price-taking behavior: no firm can have any important role in setting prices, so all firms must take the market price as given.

5. The underlying presumption here is that you are considering a perfectly competitive market, where the interaction of buyers and sellers sets the market price and quantity.

6. And that's the point of monopolistic competition. Many buyers, many sellers, almost same product but different branding and fierce competition.

7. The first that we want to consider is the exact opposite of the conditions found in the perfectly competitive market—the monopoly market.

8. They fall into the gray area in between—where there are a number of firms, each of which has some effect over the market.

9. Clearly, we could talk about the numbers of buyers and sellers, the product features, and

so forth.

10. There are significant difficulties in maintaining such a relationship and most attempts to collude end, at least eventually, in misfortune.