Communicative situations

1. Round-table discussion. The question on the agenda is «Competition is one of the cornerstones of free enterprise».

You may include the following points in your discussion:

• the principal kinds of market structures;

• perfect competition and perfectly competitive markets;

• imperfect competition: monopolistic competition and oligopoly;

• legal monopolies (public utilities, patents, copyrights and trademarks);

• the distinguishing features of perfect and imperfect competition.

Use the table given below:

Characteristics of Economic Markets
	Perfect Competition	Monopolistic Competition	Oligopoly	Monopoly
Number of Firms	Many independent firms. None able to control the market.	Many firms providing similar goods and services.	A few large firms providing similar goods and services.	A single large firm.
Control over Price	None. Market determines price.	Influence limited by the availability of substitutes.	Often influenced by a «price leader».	Much control.
Product Differen-tiation	None. Products uniform and of equal quality.	Products and services differentiated to meet the needs of specific markets.	Significant for some products like automo-biles. Little for standardized products like gasoline.	None.
Ease of Entry	Relatively easy to enter or leave the market.	Relatively easy to enter or leave the market.	Difficult. Often requires large capital investments.	Very difficult.
Part of Economy where prevalent	A few raw agricultural products (wheat, corn).	Retail trade (food, gasoline).	Steel, chemicals, autos, computers.	Local telephone, electricity, and gas utilities.
Methods of marketing	Market exchange or auction.	Advertising and quality rivalry; adminis-tered prices.	Advertising and quality rivalry; admi-nistered prices.	Advertising and service promotion

Grammar exercises Modal Verbs and their Equivalents Modal Verbs: can; could; be able to

I. Complete the sentences according to the pattern:

Pattern A: A cat ... climb trees, but it ... fly.

A cat can climb trees, but it can’t fly.

1. My sister ... dance, but she ... sing. 2. My brother ... speak French, but he ... speak English. 3. A tiny baby ... cry, but it ... talk. 4. I ... type, but I ... do shorthand. 5. You ... buy stamps at the post office, but you ... buy shoes there. 6. She ... get to the University by bus, but she ... get there by underground.

Pattern B: I ... meet him today but I ... meet him last night.

I can meet him today, but I couldn’t meet him last night.

1. Olga ... skate now, but she ... skate last winter. 2. She ... help us today, but she ... help us yesterday. 3. Father ... work in the garden this afrernoon, but he ... work on Friday. 4. We ... pay for the radio set this week, but we ... pay for it last week. 5. I ... understand his behaviour now but, I ... undestand it when I was young. 6. John ... play the guitar now, but he ... play the guitar a few years ago. 7. My brother ... read now, but he ... read before he went to school. 8. I ... answer your question yesterday, but I ... answer it now.

Pattern C: I ... tell you this secret now, but I ... to tell you tomorrow.

I can’t tell you this secret now, but I shall be able to tell

you tomorrow.

1. I ... play chess now, but I ... to play chess this afternoon. 2. I ... help you now, but I ... to help you next week. 3. Jane ... swim very well, but she ... to swim if she trains regularly. 4. Nick ... finish this work in a day or two, but he ... to finish it in a week. 5. The students ... understand this rule now, but they ... to understand it when the teacher explains it. 6. We ... go swimming now, but we ... to go swimming when it gets warmer.