1. Monopolistic competition occurs when a large number of firms produce slightly differentiated products. These firms sell similar but not identical products. Monopolistic competition resembles perfect competition in three ways: there are many buyers and sellers, entry and exit is easy, and firms take other firms’ prices as given. The distinction is that products are identical under perfect competition, while products are differentiated under monopolistic competition.
2. The firm under monopolistic competition is likely to produce less, and charge a higher price, that under perfect competition. Relative to pure monopoly, monopolistically competitive firms are likely to have lower profits, greater output, and lower prices. Firms under monopolistic competition will, of course, offer a wider variety of styles, brands, and qualities than will firms under perfect competition.
3. Oligopoly is characterized by a small number of firms and a great deal of interdependence. Oligopoly is a common market structure in the US. In oligopolistic industries prices tend to be rigid.
4. Price leadership is quite common in oligopolistic industries, one or a few firms setting the price and the rest following their lead.
5. Relative to perfect competition, it seems likely that price and profits will be higher under oligopoly. Moreover, oligopolistic industries will tend to spend more on advertising, product differentiation, and style changes than perfectly competitive industries.
I. Перепишите и письменно переведите предложения на русский язык. Вставьте нужный артикль: a) a; b) an; c) the; d) -.
1. One of … ways to speculate is to buy “penny stock”.
2. She made … long telephone call from … lobby and ate … quick lunch.
3. … bank’s most important activity is … extension of credit.
4. … travel agent would give you … information about … hotels.
II. Перепишите и письменно переведите предложения на русский язык. Заполните пропуски неопределенными местоимениями или их производными: a) some; b) any; c) no; d) их производные.
1. … banks are experimenting with accounts.
2. … boy at school had ever taken a scholarship to the university.
3. If … delays you, you must let me known.
4 You can’t expect just … student to solve the problem. It requires a mathematician.
III. Перепишите и письменно переведите предложения на русский язык. Заполните пропуски следующими словами: a) much; b) many;
c) (a) little; d) (a) few.
1. No matter how … money you have can open a bank account.
2. I have so … things to do that I don’t know which to do first.