may increase competition

may increase competition. Expansion by merger, on the other hand, does not add to supply or capacity, and it may reduce competition. Mergers, however may result in greater efficiency in the future.

1. Explain how mergers may result in greater efficiency.

2. Support the argument that mergers lead to greater in­efficiencies.

3. When would you favor, and when would you oppose, mergers?

2. General Mills is, among other things, a major producer of breakfast cereals, ALCOA produces aluminum, and Lovitt Farms, Inc. is a major wheat grower. With respect to each of these firms, compare:

1. The market in which they operate.

2. The relative importance of price in their respective markets.

3. The extent to which product differentiation and price leadership are factors in their markets.

Lesson 9 MONEY

I. Read and memorize the following words, word-combinations and word-groups:

fluctuation — коливання

e.g. In societies where value of money fluctuates people spend it immediately thinking it will be worth less tomorrow.

to hoard — запасати, накопичувати

e.g. In societies where value of money fluctuates people hoard it in the hope that its value will increase.

portability — портативність

durability — міцність

uniformity — однаковість; однорідність

e.g. Money should possess such features as portability, durability, uniformity.

dollar bill — доларова банкнота

e.g. If dollar bills had no equal denominations of money that had the same value, things could be pretty confusing.

medium of exchange — спосіб обміну

e.g. Money serves us as medium of exchange.

measure of value — міра цінності

e.g. Money serves us as measure of value.

to enable — давати право або можливість (що-небудь робити)

e.g. Money enables us to state the price of something in terms that everyone can understand.

II. Give English equivalents of the following:

бартерна економіка встановлювати ціну робити покупку засіб обміну валюта

бути небезпечним для економіки головна перевага грошей накопичення цінностей високоякісний папір вартість грошей мірило цінності

III. Fill in the blanks with appropriate words:

denomination payment paper money medium -advantages barter economy money econo­my

1. Money can be anything, that is generally accepted in ... for goods and services.

2. Equal ... of money should have the same value.

3. One of the principal ... of money over barter is its ability to be divided into parts.

4. The principal difference between a ... and a ... is that in a barter economy you must find someone who has what you want and wants what you have.

5. Money, therefore, is the ... that enables exchanges to be made easily.

6. The money you are most familiar with, currency, consists of the ... and coins that you use almost daily.

IV. Read and translate the text:

■ What is money? Money can be anything that is generally accepted in payment for goods and services.

Although anything can serve as money, as a practical matter the material should possess the following qualities:

Stability. The value of money should be more or less the same today as tomorrow. In societies where value of money fluctuates (goes up and down) people will hoard- it in the hope that its value will increase, or spend it immediately

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