X. Read each statement below and decide which of the following is not true

1. A monopsonist is the only seller or potential seller of the good in the industry.

2. The decision-maker realizes that general public act on the assumption that their actions will have no effect on the market price.

3. Any buyer plans his or her budget on the assumption that market prices are given and cannot be affected by the quantities he or she chooses.

4. Changes in market conditions that affect all firms and consumers change the equilibrium price.

5. Under perfect competition firms cannot make decisions that treat the price as independent of their own actions.

6. A number of the firms in an industry depends on the structure of a market.

XI. Make up questions to the following sentences

1. Each individual neglects any feedback from his own actions to market price.

2. They cannot regard themselves as pricetakers.

3. A monopsonist is the only buyer or potential buyer of the good in that industry.

4. An economist would not call Ford and Renault perfectly competitive.

5. The structure of a market is a description of the behaviour of buyers and sellers in that market.

XII. Answer the following questions

1. What is an industry?

2. What does a number of firms in an industry depend on?

3. What are the two limiting cases of a market structure?

4. Do any actions of individuals have effect on the market price in case of changes in market conditions?

5. What is the assumption any consumer makes a budget line on?

6. Why cannot we call Renault or Ford perfectly competitive?

7. What must each large company take account of?

8. When do individuals make decisions that can treat the price?

XIII. Translate from Russian into English

1. Отраслью называется совокупность всех фирм, производящих один и тот же товар.

2. Некоторые отрасли насчитывают множество фирм, а некоторые лишь несколько.

3. Количество фирм в отрасли зависит от структуры рынка.

4. Под структурой рынка экономисты понимают характеристику поведения покупателей и продавцов на данном рынке.

5. В структуре рынка рассматриваются два крайних случая, между которыми оказываются все другие типы рыночных структур.

6. Этими случаями являются совершенная конкуренция и монополия или монопсония.

XIV. Write a summary to the text above

Tip:

Speaking

XV. Talk to your partner and give the example of firms that cannot regard themselves as pricetakers and explain why it happens.

XVI. Work with your partner and make a short dialogue about an individual that neglects any feedback from his own actions to market price

Tip:

Section 5.2. Perfect competition key vocabulary

I. Read and remember the following words

plausible ['plɔ:zәbl] – правдоподобный, достоверный

trivial ['trɪvɪәl] – мелкий, незначительный

sensible ['sensɪbl] – целесообразный, практичный

sole [sәul] – единственный, исключительный

discretion [dɪs'kreʃn] – проницательность, прозорливость, осторожность,

осмотрительность, благоразумие

output ['autput] – продукция, выпуск, выработка

OPEC [әu'pek] – Organization of Petroleum Exporting Countries – Организация стран – экспортеров нефти

cohesive [kәu'hɪsɪv] – связанный, сплоченный, образующий единое целое

relevance ['relɪvәns] – значимость, существенность, важность

price-taking firm [praɪs 'teɪkɪɳ fә:m] – фирма – ценополучатель

prohibitive [prәu'hɪbɪtɪv] – чрезмерно, непомерно высокий

revenue ['revɪnju:] – доход, выручка

enormous [ɪ'nɔ:mәs] – громадный, гигантский, обширный, огромный

profound [prә'faund] – полный, совершенный

rule out [ru:l aut] – исключать

thereby [ðɛәbaɪ] – таким образом

сonversely [kәn'vә:slɪ] – наоборот

move up [mu:v ʌp] – увеличение

II. Translate the word combinations from English into Russian

perfectly competitive industry, to have no effect on, affect the market price, flat or horizontal demand curve, to be not a perfect substitute, sole supplier, charge the same price, identical goods, being sold.

III. Make nouns of these verbs

confront, affect, face, need, know, assume, restrict, explain, cost, compete, increase, marry, differ, work, develop, lead, safe, depart, brainstorm.

Tip:

IV. Translate the expressions from Russian into English

отражаться на рыночной цене, наиболее важная черта, правдоподобное описание, горизонтальная кривая спроса, иметь в виду, быть незначительным, довольно обычный товар, быть неразумным, быть несовершенным, назначать одну и ту же цену, однородный товар, не быть обоснованным.

V. Listen, read and translate the text