Market structure describes how competitive a market is ответы
Market structure describes how competitive a market is ответы
MARKET STRUCTURE AND COMPETITION
1. Pre-reading task. Discuss following with a partner:
Here are some things that affect how a market operates. How important do you think each one is?
1. the size of сompanies
2. what products and services are like
3. what information consumers and companies have about products
4. ease of entry into the market for сompanies
5. companies having the resources and technology they need
2. Read and translate the text:
When economists talk about таrket structure they mean the way companies compete with each other in a particular market. Let’s take the market for pizzas, for example. There may be many thousands of small companies all trying to win a share of the pizza market, or there may be only one huge company that supplies all the pizzas. These are two very different market structures, but there are many other possible structures. Market structure is important because it affects price. In some market structures, companies have more control over price. In other market structures, consumers have more control over price.
You can think of market structure as a kind of scale. At one end of the scale is perfect competition and at the other end is pure monopoly. In a market with perfect competition, there are many companies supplying the same good or service, but none of them are able to control the price. This sounds fine, but in reality it is very difficult for such a market structure to exist. What’s needed?
First of all, there must be many small companies competing. Each company has its own small share of the market. If one company has a much larger share than any other, it can affect price, and perfect competition will no longer exist.
Secondly, products or services from different companies must be the same. This doesn’t mean that everything on the market has to be identical, but they have to be perfect substitutes. In other words, one company’s product must satisfy the same need as another company’s. Imagine a company produces a television that also makes tea. Its product is different from everyone else’s. If it chooses to raise the price of its TVs, customers may still want to buy them because of this difference.
Thirdly, customers and companies must have perfect and complete information. This means that they know everything about the products and prices on the market and that this information is correct.
Fourthly, there mustn’t be any barriers to new companies entering the market. In other words there must not be anything that helps one company stay in the market and blocks others from trading.
Finally, every company in the market must have thе same access to the resources and technology they need.
If all of these conditions are met, there is perfect competition. In this kind of market structure, companies are price takers. This is because the laws of supply and demand set the price, not the company. How does this work? Very simply! An increase in demand will make a company increase its price in order to cover costs. It might try to push its prices even higher than necessary so that it can make profit. However, it will not be able to do this for very long. The encrease in demand and the higher price will make other companies want to enter the market, too. This will drive the price back down to equlibrium.
3. Read the text again and decide if these sentences are true or false:
1. Market structure describes how competitive market is.
2. Perfect competition and pure monopoly are opposites.
3. Four conditions are necessary for perfect competition to exist.
4. In perfect competition, every company makes a slightly different product.
5. Perfect competiition makes it easy for new сompanies to starttrading.
6. When there is perfect competition, сompanies are able to set any price they want.
V. Discuss the following with your partner
III. Choose the correct answer А, В or С from the list below.
II. Complete the sentences as in the text.
I. Find answers in the text.
1. Why is market structure important? 2. What does perfect competition mean? 3. What company can control the prices in a market with perfect competition? 4. Everything on the market has to be identical, hasn`t it? 5. Have one company`s products to substitute one another? 6. Why do customers and companies want to get perfect and complete information? 7. Are new companies welcome to the market? 8. Can anybody block new companies from trading? 9. Is it possible to have any discrimination when entering a market? 10. In what case can we call competition perfect?
the top and employees at the bottom.
10. Countries have been with each other for thousands
11. The point is where two things are balanced against
A | B | С |
1. shape | structure | building |
2. piece | part | market share |
3. scale | point | grade |
4. good | better | perfect |
5. is | live | exist |
6. pure | good | clean |
7. similar | identical | same |
8. gate | barrier | block |
9. barrier | close | block |
10. shopping | trading | selling |
11. equilibrium | middle | equal |
12. difference | addition | substitute |
13. access | openings | entrance |
IV. Now read the text again and decide whether these statements
are true or false.
1. Market structure describes how competitive a market is.
2. Perfect competition and pure monopoly are opposites.
3. Four conditions are necessary for perfect competition to exist.
4. In perfect competition every company makes a slightly different product.
5. Perfect competition makes it easy for new companies to start trading.
6. When there is perfect competition, companies are able to set any price they want.
Here are some things that affect how a market operates. How important do you think each one is?
— the size of companies
— what products and services are like
— what information consumers and companies have about products
— ease of entry into the market for companies
— companies having the resources and technology they need Perfect competition is really only an idea. It almost never happens in
the real world. Why do you think this is? Can you think of any market that has perfect competition?
VI. Say what you have learned about:
— Influence of market structure on prices
— Competition of small companies
— Perfect and complete information for companies
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Market structure and competition
When economists talk about market structure they mean the way companies compete with each other in a particular market. Let’s take the market for pizzas, for example. There may be many thousands of smallcompanies all trying to win a share of the pizza market, or there may
be only оne huge company that supples, all the
pizzas. These are two very different market structures, but there are many other possible structures Market structure is important because
it affects price. In some market structures, companies have more control over price. In other market structures, consumers have more control over price.
You can think of market structure as a kind of scale. At one end of the scale is perfect competition and at the other end is pure monopoly. In a market with perfect competition, there are many companies supplying the same good or service, but none of them are able to control the price. This sounds fine, but in reality it is very difficult for such a market structure to exist. What’s needed?
First of all, there must be many small companies competing. Each company has its own small share of the market. If one company has a much larger share than any other, it can affect price, and perfect competition will no longer exist.
Secondly, products or services from different companies must be the same. This doesn’t mean that everything on the market has to be identical, but they have to be perfect substitutes. In other words, one company’s product must satisfy the same need as another company’s. Imagine a company produces a television that also makes tea. Its product is different from everyone else’s. If it chooses to raise the price of its TVs, customers may still want to buy them because of this difference.
Thirdly, customers and companies must have perfect and complete information. This means that they know everything about the products and prices on the market and that this information is correct.
Fourthly, there mustn’t be any barriers to new companies entering the market. In other words there must not be anything that helps one company stay in the market and blocks others from trading.
Finally, every company in the market must have the same access to the resources and technology they need.
If all of these conditions are met, there is perfect competition. In this kind of market structure, companies are price takers. This is because the laws of supply and demand set the price, not the company. How does this work? Very simply! An increase in demand will make a company increase its price in order to cover costs. It might try to push its prices even higher than necessary so that it can
make more profit. However, it will not be able to do this for very long. The increase in demand and the higher price will make other companies want to enter the market, too. This will drive the price back down to equilibrium.
В Comprehension
Now read the text again and decide whether these statements are true or false.
1 Market structure describes how
competitive a market is. T/F
2 Perfect competition and pure
monopoly are opposites. T/F
3 Four conditions are necessary for
perfect competition to exist. T/F 4 In perfect competition, every company makes a slightly
different product. T/F
5 Perfect competition makes it easy
for new companies to start trading. T/F
6 When there is perfect competition, companies are able to set any price they want. T/F
Before you listen
Discuss the following with your partner.
Perfect competition is really only an idea. It almost never happens in the real world. Why do you think this is? Can you think of any market that has perfect competition?
С Listening )))
Now complete each sentence with words from the box. Then listen and check your answers.
a monopoly an oligopoly
1 Any market structure apart from perfect competition is called.
2. is when there is only one seller of good or service.
3. is when only a small number of sellers control the market.
4. is when there is only one buyer in the market for a product or service.
Before you read _
Discuss these questions with your partner.
Can you think of any reason why them are monopolies?
Do you think monopolies have advantages as well as disadvantages?
D Vocabulary
Complete each sentence with a word from the box.
■aggressive | ■innovation | ■network |
■ cables | ■ illegal | ■legal |
■ naturally | ■occurs | ■ printing |
■publishing | ■ takeover |
1 A. is a set of connections.
When one company gains control of another company it is called a.
Raw materials are things like wood or oil that exist
4 Electricity travels along. to reach
5. people get what they want by
violence and force.
6. companies are responsible for the
writing and pictures in books, etc.
7. companies make books.
8. is inventing and thinking of new
solutions to problems.
9 If something is. it is allowed by law.
10 When something is. it is not
11 If a problem. you will have to deal
Reading 2
Monopolies
In a monopoly, one company has a much larger market share than anyother company Infact, their share is so big that other companies cannot really compete. When there is а monopoly, the normal laws of supply and demand do not always work. Monopolies come in different kinds, but a pure monopoly is when there is only one company in the market providing a particular product or service This situation, in fact, is the exact opposite of perfecf соmpetition. How do pure monopolies happen?
Somemonopolies occur naturally This happens when a company manages to create an economy of scale. An economy of scale is when variable costs of production increase more slowly than
increasesin supply Everycompany would like to
telephone company is a good example. Telephone companies have to spend millions of pounds laying cables. However, once they have made the network, running the system does not cost so much. Any other company that wants to compete will have to make their own network. Not surprisingly, not many bother!
However, the world of business is a jungle, and there are more aggressive ways to create a monopoly. One of these is by making takeovers. This means that a more powerful company buys a smaller one in the same industry. Takeovers happen vertically or horizontally. In a vertical takeover, a company buys companies that supply it with materials or services. For example, a publishing company might buy a printing business. In a horizontal takeover, a company buys its competitors. The competitors then become part of the first company.
One final way a monopoly occurs is for the government to make it happen. This is called a legal monopoly, but not because other monopolies are illegal! It is called a legal monopoly because it is created by law. The government may decide that a competitive market is not good for a certain industry. In this case, it can make one company the only legal supplier. Sometimes, it provides the service itself. This is called a store monopoly. The postal service in many countries is an example of a state monopoly.
Generally, monopolies are not good for consumers. This is because in a monopoly, the laws of supply and demand do not work in the same way. A company with a monopoly becomes a price maker. They have much more power to set the price for their product or service. Also, they don’t usually spend money on innovation because they don’t need to. The bottom line, as they say, is that monopolies mean less choice for consumers.
E Comprehension
Now read the text again and match the phrases on the left with the definitions on the right.
1 pure monopoly
2 natural monopoly
3 legal monopoly
4 horizontal takeover
5 vertical takeover
A a company with the power to set prices in the market
В when a company buys a competitor
С when only one company supplies to the market
D when a company buys a supplier
E when a monopoly occurs due to economies of scale
F when a monopoly occurs due to government control
Before you listen
Discuss this question with your partner.
What dangers might monopolies face?
F Listening )))
Now listen to someone talking about the threats which face monopolies. Tick the things in the list that are mentioned.
1 rising variable costs
2 a fall in demand
3 a change in fixed costs
4 innovation by another company
5 takeover from a foreign company
G Speaking
Discuss these questions with your partner.
Do you know any industries where a monopoly exists?
What are the benefits or drawbacks of having a monopoly in that industry?
Task
Give a two-minute summary of what perfect competition is. First, read text 1 again and make notes below on the following and then present the talk to your class.
What is perfect and imperfect competition?
What is needed to make perfect competition possible?
Why is it very difficult to create perfect competition?
Notes:
H Writing
Answer this essay questions: What do economists mean by market structure? What kinds of market structure exist? How do different market structures affect consumers?
Essay about market structure
Use this plan to help you.
Introduction. What is market structure?
Useful words and phrases:
compete, competition, market share, control over price
Explain perfect and imperfect competition.
Useful words and phrases:
company size, market share, perfect substituter. perfect information, barriers, access
Useful words and phrases:
pure monopolies, natural monopolies, economy of scale, takeover, legal monopolies
Say how market structure affects consumers.
Useful words and phrases:
price makers and price takers, variety and consumer choice, quality
Conclusion. Sum up in a few words what market structure is and how it affects consumers.
Write 200-250 words
Before you read
Discuss these questions with your partner.
In what situation(s) do you think a worker can ask for a lot of money?
In what situation(s) can an employer pay less money to workers?
A Vocabulary
Match the words with the definitions.
6 productivity 7 afford
A employees B satisfaction or usefulness
C be able to buy
E amount produced in a certain time
F employ more staff
G both sides give up something in order to agree
Hwhat a company produces
The labour market
In any market for products and services,
consumers try to get the maximum utility, or satisfaction, from their purchase This is the same in the labour market What do companies want from their purchase of labour? What utility do they get?The answer is increased output.
Just like any other market, the labour market
The suppliers in the labour market are workers. Just like suppliers in other markets they wanta
higher price for greater supply. In other words, as supply of labour inereases. they want higher wages. Again, you can see this shown in figure 1. The wage that workers act for their labour is a compromise between what they want and what companies will pay. This is the point where the lines cross in figure 1.
However, there can be shifts in demand. These shifts can cause the overall demand for labour to increase or decrease at any wage rate. For example, if there is an increase in the demand for the end product or service, there will be an overall increase in demand for labour (the demand curve shifts to the right). However, if new technology can replace workers, (hen there will be an overall decrease in demand for labour (the demand curve shifts to the left).
One more thin, which affects demand for labour is workers’ productivity, The productivity of a worker is how much they produce in a certain time. For example, imagine that a worker makes ten pencils an hour one day. and only eight pencils an hour the next day. This is a fall in productivity When worker productivity falls, companies will pay less for labour. They are also less likely to employ new workers.
В Comprehension
Now read the text again and complete the sentences below in your own words in the space provided.
3 Workers want higher.
5 Four things that cause a change in demand for labour are.
Notes:
Before you listen_
Discuss this question with your partner.
What makes workers more or less productive?
С Listening )))
Now listen to someone talking about one thing which affects productivity: the law of diminishing returns. Listen and choose the chart А, В or С which best illustrates this law.
Before you read_
Discuss this question with your partner.
What would influence whether you want to work or not? Think about:
where job situated
D Vocabulary
Complete each sentence with a word or phrase from the box.
■ balance | ■ compensation | ■complex |
■ influences | ■ leisure | ■ play a/an |
■ rate | ■ role | ■ skills |
■ substitution | ■ switch off |
3. is what you receive if you are badly
affected by something.
4. means replacing one thing
5Most people’s. time is at the
weekend and in the evenings.
6 It can be difficult to get the right.
between work and free time.
7 The money you can earn. people’s
8 Some economic problems are very.
There is no easy solution.
9 The hourly. for this job is seven
10 The ability to speak foreign languages is one of the. needed for this job.
Reading 2
Supply of labour
Why do people work? To make money, of course. However, nothing in economics is ever that simple. The economist will ask a further question: how much are people prepared to work- The answer to this question is much more complex. Finding the right balance between work time and leisure time is one of the trade- offs we have to make in life. The balance each person chooses depends on a number of things.
First of all. there are natural limits. There are only 24 hours in a day. and we can’t spend all of them working. Most people need eight hours sleep. That brings the number of hours we can spend on work or leisure down to l<>. None of us are robots, so we all need some time to rest and switch offfrom work. This also brings down the possible number of working hours.
Then, of course, money plays a role. The way money influences working hours, though, is quite complicated. It can be separated into two effects: the income effect and the substitution effect.
The income effect works like this: People’s time is a resource. It they give up that resource for work, they need compensation. This is usually in the form of a wage for hours worked. The more compensation they gel for each hour worked, the less they will need to work People with higher rates of pay (wages) can afford to have more
leisure time than people on lower rales of pay.
So far. so good. However, are people happy just silling at home and enjoying themselver? It depends on what they‘lllose. In other words, it depends on the opportunity cost of not working. As the hourly rate for work increases, the cost of not working also increases. This means that as the wage rale increases, people want to work more hours. This is called the substitution effect. But the substitution effect also has a limit. Eventually, people will not work more hours, no matter how
good the compensation is.
A good wage rate clearly attracts more workers. and encourages them to work longer hours.
However, the strength of this relationship depends
on how clastic the labour supply is. Sometimes it is difficult for companies to find a certain kind of worker. Perhaps there are not many people with the necessary skills. Or perhaps the company is in a place where there are not many available workers. In these situations, even if employers double the wage rate, they will only attract a small
number of extra workers. The labour supply is
ineclastie. In the opposite situation, when it is easy for companies to find workers, the labour supply becomes clastic.
E Comprehension
Now read the text again and choose the sentence which best summarises each paragraph.
A People generally spend equal amounts of
time on work and leisure,
B People have to make compromises.
С People work in order to have leisure time.
A There are only a limited number of hours
available for working.
В Everyone works about 16 hours.
C People can only work up to 24 hours a day.
A You have to work more hours to make more money.
B Earning a good wage allows you to spend less time working.
C Some people get paid in their leisure time.
A If you work more, you earn more
В If your wage is bad, you will want to
C If your wage is good, you will want to
A Sometimes it’s hard to attract workers.
В Sometimes workers don’t want more money.
C Elastic labour markets are more common than inelastic labour markets.
Before you listen_
Discuss these questions with your partner.
Why are some jobs paid better than others?
Why do some people get paid more than others for doing the same job?
F Listening )))
Now listen to someone answering these questions. You will hear four reasons for differences in pay. What are they?
G Speaking
Discuss these questions with your partner.
Do people only work for money? What other motivation is there to work?
Task
Give a two-minute talk on how supply and demand work in the labour market.
First, read the texts again and make notes below on the following.
How is the labour market just like any other market?
What affects demand for labour? What affects the supply of labour? What motivates people to work?
H Writing
You have seen this job advertised in a newspaper. Write a letter of application for the job.
Required: Summer Camp Team Leader
We are looking for suitably qualified and experienced team loaders for our summer camps for young children (aged seven to twelve). Children come from all over Europe to our camps and take part in a variety of outdoor activities (camping, canoeing, climbing, trekking, etc).
Suitable candidates should have proven experience of working with this age group and have the necessary skills and qualifications.
Send letters of application to:
Summer Fun Camps
Letter of application
Use these notes to help you.
Say why you’re writing and where you saw the advertisement.
Useful words and phrases:
Dear Sir /Madam. I am writing in response to your advertisement in. I would like to apply for the post of.
Summarise the suitable qualification you have for the job.
Useful words and phrases:
In addition, I hold certificates in. I am a fluent / good speaker of.
Summarise the relevant experience you have.
Useful words and phrases:
Say why you would like the job.
Useful words and phrases:
Say thank you and sign off:
I look forward to hearing from you soon. Yours faithfully, (your full name)
Write 100-150 words
Before you read _
Discuss the following with your partner.
Look at the photos. Each photo shows
something that an economy needs in order to produce. Talk with your partner about what the photos show and why each thing is necessary for an economy
Choose the correct word.
1 All machines need maintenance / replacement so that they keep working well.
2 Scientists’ laboratories are usually full of packaging / apparatus for experiments.
3 When a machine gets very old you need to buy a
4 It’s illogical / mental to take an umbrella out on a sunny day.
5 Plastic and cardboard are used a lot for the
packaging / apparatus around products.
6 Some people enjoy doing illogical / mental activities like crosswords and board games.
7 Wood that hasn’t been made into anything yet is called timber / crops.
8 A storage / warehouse is a large building for storing things.
9 The things that farmers grow in then fields are called timber / crops.
10 An industry that needs many workers is known as
a factor / labour intensive industry.
11 If you don’t need furniture or equipment for some time, you can put it into storage / warehouse.
12 The price of a product is a factor / labour which influences our decision to buy it.
Reading 1
Factors of production
One morning you wake up with a greatidea.
The factors of production arc the starting point for all economies. No economy can exist without them. The most basic of the factors is land. When economists talk about land, however, they don’t just mean space to build on or fieldsto grow crops. Land means everything that nature provides and we can use for production. The land factor includes raw materials like coal, metals, oil and timber. It also includes things like water, fish and salt. So. although it seems illogical, land also means the sea!
The second factor is labour. Haw materials will just stay in the ground unless people dig them out and do something with them. Similarly, factory machines will sit doing nothing Without people to operate them. Labour can mean the physical effort such as lifting, digging and building. This is called manual work. Labour also includes mental work like thinking, writing, communicating and designing. Industries that need many workers working long hours are called labour intensive industries. However, the quality of labour is as important as the quantity. An educated, skilled and fit workforce is more productive than an uneducated, unskilled and unhealthy one. This characteristic of the labour factor is called human capital. Some countries have large labour forces, but are poor in human capital because the economy lacks education and health care.
The third factor is capital. Capital includes buildings such as factories for production and warehouses for storage. It also includes the tools and equipment that workers use in the manufacturing process. In heavy industries such as shipbuilding or steel making, capital usually involves big machinery and mechanical equipment. In high-tech industries, on the other hand, capital generally means computers and complex laboratory apparatus. These days, industry tends to be more capital intensive than labour intensive.
When companies make investments, they buy new capital. There are two types of investment that companies need to make. The first is to buy new equipment so that they can expand their production. This is called net investment. Net investment is essential for economic growth. However, equipment gets old and needs repairing or replacing. The money spent on this kind of maintenance is called replacement investment.
Land, labour and capital are the three factors of production identified by Adam Smith and the classical economists. However, more recent economists have identified one more factor: entrepreneuship. This means people like you. with great business ideas that set the economy in motion.
E Comprehension
Now read the text again and decide whether these statements are true or false.
Raw materials are the most important factor of production.
The land factor includes all the raw materials that come from the land and the sea.
The most important thing about the labour factor is the size of the labour force.
In modern economies, more labour
is used than capital.
Net investment allows companies to increase their production.
Entrepreneurs are part of the labour factor.
Before you listen
Discuss the following with your partner.
Entepreneurship is the fourth factor of
production. Which things in the list below do you think entrepreneurs bring to the economy?
С Listening
1 managing people
2 motivating people
3 finding solutions to problems г
4 communicating with customers
5 inventing new products
6 finding new markets 2 making profits
8 organising things
Now listen and tick the things which are mentioned.
Before you read _
Discuss the following with your partner.
Look at the workers in the picture:
What kind of work are those people doing?
How do you think they feel about it?
What advantages are there for the company in organising workers like this?
Market structure and competition Wh
Market structure and competition
When economists talk about market structure they mean the way
companies compete with each other in a particular market. Let’s take the
market for pizzas, for example. There may be many thousands of small
companies all trying to win a share of the pizza market, or there may be only
one huge company that supplies all the pizzas. These are two very different
market structures, but there are many other possible structures. Market
structure is important because it affects price. In some market structures,
companies have more control over price. In other market structures,
consumers have more control over price.
You can think of market structure as a kind of scale. At one end of the
scale is perfect competition and at the other end is pure monopoly. In a
market with perfect competition, there are many companies supplying the
same good or service, but none of them are able to control the price. This
sounds fine, but in reality it is very difficult for such a market structure to
exist. What’s needed?
First of all, there must be many small companies competing. Each
company has its own small share of the market. If one company has a much
larger share than any other, it can affect price, and perfect competition will
no longer exist.
Secondly, products or services from different companies must be the
same. This doesn’t mean that every thing on the market has to be identical,
but they have to be perfect substitutes. In other words, one company’s
product must satisfy the same need as another company’s. Imagine a
company produces a television that also makes tea. Its product is different
from everyone else’s. If it chooses to raise the price of its TVs, customers
may still want to buy them because of this difference.
Thirdly, customers and companies must have perfect and complete
information. This means that they know everything about the products and
prices on the market and that this information is correct.
Fourthly, there mustn’t be any barriers to new companies entering the
market. In other words there must not be anything that helps one company
stay in the market and blocks other from trading.
Finally, every company in the market must have the same access to the
resources and technology they need.
If all of these conditions are met, there is perfect competition. In this
kind of market structure, companies are price takers. This is because the laws
of supply and demand set the price, not the company. How does this work?
Very Simply! An increase in demand will make a company increase its price
in order to cover costs. It might try to push its prices even higher than
necessary so that it can make more profit. However, it will not be able to do
this for very long. The increase in demand and the higher price will make
other companies want to enter the market, too. This will drive the price back
down to equilibrium.
Choose the correct answer А, в or с from the
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Discuss the following with your partner. Hero are some things that affect how a market operates. How important do you think each one is? the size of companies -* what products and services are like -* what information consumers and companies have about products •# ease of entry into the market for companies -+ companies having the resources and technology Choose the correct answer А, В or С from the 1 Companies usually have a____B________ with senior managers at the top and employees at 2 McDonald’s has a very big____B______ of the fast food market. 3 Some teachers mark students work using a ___A_________ from A to E. 4 No one’s work is____C__________ We all make 5 A perfect economic system may never ____С_____ 6 A_____A________ monopoly means an absolute or 7 Not all twins are ______B_______ Some twins are brother and sister, for example. 8 Sometimes a person’s colour or race can be __B_________ato getting work. 9 We use curtains to _____B_________ light. 10 Countries have been _____B________ with each other for thousands of years. 11 The___A__________ point is where two things are balanced against each other. 12 Honey is a healthier _____C________ for sugar to make things sweet. 13 Everyone should have ____A_________ to education. 1/ A / shape / B / structure/ C / building 2 / A /piece / B / part / C / market share 3 /A /scale / B / point / C / grade 4 / A / good / B / better / C / perfect 5 / A / is /B / live / C / exist 6 / A / pure / B / good / C / clean 7 / A / similar / B / identical / C / same 8 / A / gate / B/ barrier / C / block 9 / A / barrier / B/ close / C / block 10 / A / shopping / B /trading / C /selling 11 / A / equilibrium / B / middle / C / equal 12 / A / difference/ B / addition/ C /substitute 13 / A / access / B / openings /C /entrance Обсудите следующее с вашим партнером. Здесь некоторые вещи, которые влияют на работу рынка. Насколько важным Вы считаете каждый из них? Здесь размеры компаний — * Какие продукты и услуги предпочитают — * Какой информацию потребители и компании Знают о продуктах • # легкость входа на рынок для компаний — + Компаний, имеющих ресурсы и технологии Которые им необходимы Выберите правильный ответ А, В или С от Списка противоположенного. 1 Компании, как правило имеют структуру из топ-менеджеров на верху и сотрудников 2 Mc Donald стал очень большой частью рынка фаст-фуда. 3 Некоторые учителя помечают работы студентов, используя Шкалу от А до Е. 4 Ни одна работа не является идеальной, Мы все делаем 5 A совершенной экономической системы никогда не существовало 6 Чистая монополия подразумевает абсолютную или 8 Иногда цвет лица или расы может быть барьером для получения работы. 9 Мы используем шторы как барьер для света. 10 Страны торговали друг с другом в течение тысяч лет. 11 точка равновесия это где две вещи сбалансированы друг против друга. 12 Мед является здоровой заменой для сахара Может сделать вещи сладкими. 13 Каждый человек должен иметь доступ к образованию. 1 /форма / структура / здания 2 / часть / часть / доля рынка 3 / шкалы / точки / сорт 4 / хорошо / лучше / идеальной 5 / в / жить / существовать 6 / чистая / хорошо / чистый 7 / Похожие / идентичными / то же 8 / Ворота / барьер / блок 9 / барьер / закрыть / блок 10 / Покупки / торговые / продаже 11 / равновесия / средний / равны 12 / разница / добавление / замену 13 / Доступ / отверстия / вход When economists talk about market structure they mean the way companies compete with each other in a particular market. Let’s take the market for pizzas, for example. There may be many thousands of small companies all trying to win a share of the pizza market, or there may be only one huge Company that supplies all the pizzas. These are two very different market Structures, but there are many other possible structures. Market structure is important because it affects price. In some market structures, companies have more control over price. In other market structures, consumers have more control You can think of market structure as a kind of scale. At one end of the scale is perfect competition and at the other end is pure monopoly. In a market withperfect competition, there are many companiessupplying the same good or service, but none ofthem are able to control the price. This sounds fine,but in reality it is very difficult for such a marketstructure to exist. What’s needed? First of all, there must be many small companies competing. Each company has its own small share of the market. If one company has a much larger share than any other, it can affect price, and perfectcompetition will no longer exist. Secondly, products or services from different companies must be the same. This doesn’t mean that everything on the market has to be identical, but they have to be perfect substitutes. In other words, one company’s product must satisfy the same need as another company’s. Imagine a company produces a television that also makes tea. Its product is different from everyone else’s. If it chooses to raise the price of its TVs, customers may still want to buy them because of this difference. Thirdly, customers and companies must have perfect and complete information. This means that they know everything about the products and prices on the market and that this information is Fourthly, there mustn’t be any barriers to new companies entering the market. In other words there must not be anything that helps one company stay in the market and blocks others from trading. Finally, every company in the market must have the same access to the resources and technology If all of these conditions are met, there is perfect competition. In this kind of market structure, companies are price takers. This is because the laws of supply and demand set the price, not the company. How does this work? Very simply! An increase in demand will make a company increase its price in order to cover costs. It might try to push its prices even higher than necessary so that it can make more profit. However, it will not be able to do this for very long. The increase in demand and the higher price will make other companies want to enter the market, too. This will drive the price back down to equilibrium. Now read the text again and decide whether these statements are true or false. 1/ Market structure describes how competitive a market is. T П / F П 2/ Perfect competition and pure monopoly are opposites. T П / F П 3/ Four conditions are necessary for perfect competition to exist. T П / F D 4 /In perfect competition, every company makes a slightly different product. T • / F • 5/ Perfect competition makes it easy for new companies to start trading. T П / F D 6/ When there is perfect competition, companies are able to set any price Discuss the following with your partner. -* Perfect competition is really only an idea. It almost never happens in the real world. Why do you think this is? Can you think of any market that has perfect competition? Now complete each sentence with words from the box. Then listen and check your answers. a monopoly / an oligopoly a monopsony / imperfect competition 1/ Any market structure apart from perfect competition is called ____________ 2/ _______________ is when there is only one seller of a good or service. 3/ _______________ is when only a small number of sellers control the market. 4/ _______________ is when there is only one buyer in the market for a product or service. Before you read Discuss these questions with your partner. Can you think of any reason why there are monopolies? Do you think monopolies have advantages as well as disadvantages? Complete each sentence with a word from the box. aggressive / innovation / network / publishing • cables /• illegal / legal •/ naturally occurs •/ printing •/ takeover 1/ A _______ network _________is a set of connections. 2/ When one company gains control of another company it is called a __ takeover _______ 3/ Raw materials are things like wood or oil that exist __•/ naturally ___________ 4/ Electricity travels along _• cables ____________ to reach our houses. 5/ _ aggressive ____________ people get what they want by violence and force. 6/ / publishing ___________ companies are responsible for the wriung and pictures in books, etc. 7/ _ printing •_____________ companies make books. 8/ _/ innovation ______________is inventing and thinking of new solutions to problems. 9/ I If something is __ occurs •/ _, it is allowed by law. 10/ When something is _• illegal it is not allowed by law. 11/ If a problem __legal •, you will have to deal with it. In a monopoIy, one company has a much larger market share than any other company. In fact,their share is so big that other companies cannotreally compete. When there is а monopoIy, the normal laws ol supply and demand do not alwayswork. Monopolies come in different kinds, but a pure monopoIy is when there is only onecompany in the market providing a particularproduct or service. This situation, in fact, is theexact opposite of perfect competition. How dopure monopolies happen? Some monopolies occur naturally. This happenswhen a company manages to create an economyof scale. An economy of scale is when variablecosts of production increase more slowly thanincreases in supply. Every company would like tobe in this situation. Unfortunately, it’s not easyto achieve. Economies of scale are possible forcompanies which need a lot of money to set upbut much less money to run. 32 A telephone company is a good example. Telephone companies have to spend millions of pounds laying cables. However, once they have made the network, running the system does not cost so much. Any other company that wants to compete will have to make their own network. Not surprisingly, not many bother! However, the world of business is a jungle, and there are more aggressive ways to create a monopoly. One of these is by making takeovers. This means that a more powerful company buys a smaller one in the same industry. Takeovers happen vertically or horizontally. In a vertical takeover, a company buys companies that supply it with materials or services. For example, a publishing company might buy a printing business. In a horizontal takeover, a company buys its competitors. The competitors then become part of the first company. One final way a monopoly occurs is for the government to make it happen. This is called a legal monopoly, but not because other monopolies are illegal! It is called a legal monopoly because it is created by law. The government may decide that a competitive market is not good for a certain industry. In this case, it can make one company the only legal supplier. Sometimes, it provides the service itself. This is called a state monopoly. The postal service in many countries is an example of a state monopoly. Generally, monopolies are not good for consumers. This is because in a monopoly, the laws of supply and demand do not work in the same way. A company with a monopoly becomes a price maker. They have much more power to set the price for their product or service. Also, they don’t usually spend money on innovation because they don’t need to. The bottom line, as they say, is that monopolies mean less choice for consumers. Now read the text again and match the phrases on the left with the definitions on the right. 1/ pure monopoly 2 / natural monopoly 3 / legal monopoly 4 / horizontal takeover 5 / vertical takeover A/ a company with the power to set prices in the market/6 В/ when a company buys a competitor/4 С/ when only one company supplies to the market/1 D/ when a company buys a supplier/5 E/ when a monopoly occurs due to economies of scale/2 F/ when a monopoly occurs due to government control/3 Discuss this question with your partner. -> What dangers might monopolies face? 1 / rising variable costs 2 / a fall in demand 3 / a change in fixed costs 4 / innovation by another company 5 / takeover from a foreign company Discuss these questions with your partner. • Do you know any industries where a monopoly exists? • What are the benefits or drawbacks of having a monopoly in that industry? Give a two-minute summary of what perfect competition is. First, read text 1 again and make notes below on the following and then present the talk to your class. What is perfect and imperfect competition? What is needed to make perfectcompetition possible? Why ie it very difficult to create perfectcompetition? Access (n ) / акцесс Answer this essay question: ‘What do economists mean by market structure? What kinds of market structure exist? Howdo different market structures affect consumers? Essay about market structure Use this plan to help you. Introduction. What is market structure? Useful words and phrases: compete, competition, market share, control over price Explain perfect and imperfect competition. ^ Useful words and phrases: company size, market share, perfect substitutes, perfect information, barriers, access Useful words and phrases: pure monopolies, natural monopolies, economy of scale, takeover, legal monopolies Say how market structure affects consumers. ^ Useful words and phrases: price makers and price takers, variety and consumer choice, quality Conclusion. Sum up in a few words what market structure is and how it affects consumers. Write 200-250 words _________________________________________34 | И / Чтение / 1 Когда экономисты говорят о структуре рынка они имеют в виду то, как компании конкурируют друг с другом в том или ином рынке. Давайте возьмем Рынок пиццы, например. Там могут быть многие тысячи небольших компаний все пытаются чтобы выиграть доли рынка пиццы, или может быть только одна огромная компания, которая поставляет все пиццы. Эти два совершенно разных рынка Структуры, но есть много других возможных структур. Рыночная структура очень важна, поскольку она влияет на цену. В некоторых рыночных структурах, компании имеют больший контроль над ценой. В других рыночных структур, потребителей иметь больше контроля Вы можете думать о структуре рынка как своего рода масштабе. На одном конце шкалы является совершенной конкуренции и На другом конце чистая монополия. На рынке с совершенной конкуренции, есть много компаний, поставляющих один и тот же товар или услугу, но ни одна из них в состоянии контролировать цены. Это звучит прекрасно, но на самом деле рынку с такой структурой очень трудно существовать. Что для этого нужно? Прежде всего, должно быть много небольших конкурирующих компаний. Каждая компания имеет свою собственную небольшую долю рынка. Если одна компания имеет гораздо большую Долю чем любая другая, это может повлиять на цену, и идеальной конкуренции уже не будет. Во-вторых, продукты или услуги, из различных компании должны быть одинаковыми. Это не означает, что все, что на рынке должны быть одинаковыми, но они продукт одной компании должен заменять продукт другой. Другими словами, продукт одной компании должен удовлетворять те же необходимости, как и продукт другой компании. Представьте себе, Компания производит телевизоры, что также делает чай. Ее продукция отличается от всех остальных. Если они захотят поднять цены на свои телевизоры, клиенты могут все еще хотят покупать их потому что они отличаются от других. В-третьих, клиенты и компании должны иметь совершенной и полной информации. Это означает, что они знают все о продуктах и Ценах на рынке, и что эта информация должна быть верной. В-четвертых, не должно быть никаких препятствий для новых Компаний выходящих на рынок. Другими словами не должно быть ничего, что помогает компании остаться на рынке и блокировать других. Наконец, каждая компания на рынке должна иметь такой же доступ к ресурсам и технологиям, которые им нужны. Если все эти условия соблюдены, то это идеальная конкуренция. В такой структуре рынка, компании принимают цены. Это происходит потому, Законы спроса и предложения устанавливают цену, а не компании. Как это работает? Очень просто! увеличение спроса диктует компании увеличивать его цену, чтобы покрыть расходы. Они могут попытаться поднять свои цены даже выше, чем необходимо, чтобы они смогли получить больше прибыли. Тем не менее, они не смогут сделать это очень долго. Увеличение спроса и более высокая цена сделают так, что другие другие компании захотят войти в этот рынок, тоже. Это будет способствовать падению цены до достижения равновесия. Теперь прочитайте текст еще раз и решите, эти утверждения истинные или ложные. 1 / Структура рынка описывает, как Происходит конкуренция на рынке. Д 2 / Совершенная конкуренция и чистая монополии являются противоположностями. Д 3 / Четыре условия являются необходимыми для Существования совершенной конкуренции. Д 4 / В совершенной конкуренции, каждая Компания производит немного отличающиеся продукты. Н 5 / Совершенная конкуренция позволяет легко Выйти на рынок новым компаниям для начала торговли. Д 6 / При наличии совершенной конкуренции, компании имеют возможность устанавливать любые цены Прежде, чем Вы слушаете Обсудите следующее с вашим партнером. — * Совершенная конкуренция на самом деле всего лишь идея.Этопочти никогда не прочиходит в реальном мире. Как вы думаете почему? Можете ли вы назвать любой рынок , который имеет совершенную конкуренцию? Теперь завершите каждое предложение со словами из коробки. Тогда слушайте и проверить свои ответы. монопсонии / несовершенной конкуренции 1 / Любая структура рынка, кроме совершенной конкуренции, называется ____________ 2 / _______________, когда имеется только один продавец товара или услуги. 3 / _______________, когда лишь небольшое количество продавцов контролировать рынок. 4 / _______________, когда есть только один покупатель на рынке продукт или услугу. Прежде чем читать Обсудите эти вопросы с вашим партнером. Можете ли вы назвать причину, почему существуют монополии? Как вы думаете, монополии имеют свои преимущества, так и недостатки? Выполните каждое предложение со словом из коробки. агрессивные / инновации / сети / публикации • Кабели / • незаконное / правовые • / естественно • происходит / печать • / поглощения 1 / сети представляет собой набор соединений. 2 / Если одна компания получает контроль над другой компанией это называется поглощение 3 / Сырье такие вещи, как лес или нефть, которые естественны 4 / Электричество проходит вдоль кабеля для достижения наших домов. 5 /агрессивные людям получают то, чего они хотят от насилия и силы. 6 / публикационные компании несут ответственность за записи и картинки в книгах, и т.д. 7 /печатные компании делают книги. 8 / инновации изобретают и придумывают новые решения проблем. 9 / I Если что-то происходит, это разрешено законом. 10 / Когда что-то не законно это не разрешено законом. 11 / Если проблема правовая, вы будете иметь дело с ним. В monopoIy, одна компания имеет гораздо большую Долю рынка, чем любые другие компании. В самом деле, их доля настолько велика, что другие компании не могут реально конкурировать. Когда есть монополия,нормальные законы спроса и предложения не всегдаработают. Монополии бывают разных видов, ночистая монополия, когда есть только одна Компания на рынке предоставляет определенный продукт или услугу. Такая ситуация, по сути, являетсяпрямая противоположность совершенной конкуренции. Как произошла, что случилась чистая монополия? Некоторые монополии происходят естественно. Это происходит, когда компании удается создать масштабную экономику. Масштабная экономика, это когда переменныезатраты на производство растут медленнее, чем увеличиваются поставки. Каждая компания хотела быбыть в этой ситуации. К сожалению, этого не так просто достичь. Масштабные экономики возможны компаниям, которые нужно много денег, чтобы создатьпроизводствоно гораздо меньше денег, начать производить товар. 32 Телефонная компания является хорошим примером. Телефонные компании вынуждены тратить миллионы фунтов прокладки кабелей. Однако, как только они создали сеть, запуск системы не будет стоить много. Любой другой компании, которая хочет конкурировать придется сделать свои собственные сети.не Неудивительно, не многие беспокоятся! Тем не менее, мир бизнеса это джунгли, и Есть более агрессивные способы создания монополий. Одним из них является поглощение. Это означает, что более мощная компания покупает меньшую в той же отрасли. Поглощения происходят вертикально или горизонтально. В вертикальном поглощении, компания покупает компании, которые снабжают его материалами или услугами. Например, Издательская компания может купить печатный бизнес. В горизонтальном поглощении, компании покупаютсвоих конкурентов.Затем конкуренты становятся частью первой компании. На последней стадии монополия использует Правительство, чтобы это произошло. Это называется правовой монополией, но не потому, что других монополии Вообще-то, монополии не очень хороши дляпотребителей. Это потому, что в монополии, Законы спроса и предложения не работают как на обычном рынке. Компания монополист сама устанавливает цены. Они имеют гораздо больше власти, чтобы установитьцены на свой продукт или услугу. Кроме того, оникак правило, не тратят деньги на инновации, потому чтоони имне нужны. В итоге, как говорят, чем больше монополий, тем меньше выбора для потребителей. Теперь прочитайте текст еще раз и соответствуют фразы Слева с определениями справа. 1 / чистой монополии 2 / естественных монополий 3 / правовые монополии 4 / горизонтальные поглощения 5 / вертикальное поглощение 6 / цена производителя А/ Компании с властью, чтобы устанавливать цены на рынке В /, когда компания покупает конкурента С /, когда только одна компания поставляет на рынок D /, когда компания покупает поставщика E /, когда монополия происходит за счет эффекта масштаба F /, когда монополия возникает из-за государственного контроля Прежде, чем Вы слушаете Обсудите этот вопрос с вашим партнером. -> Какие опасности могут монополии сталкиваются? Теперь слушайте кто-то говорил об угрозах, которые стоят перед монополиями. Отметьте вещи в списке, который упоминается. 1 / рост переменных затрат ^ 2 / падения спроса 3 / изменение фиксированных затрат 4 / инновации другой компании 5 / поглощения от иностранной компании Обсудите эти вопросы с вашим партнером. • Знаете ли вы отраслях, где существует монополия? • Каковы преимущества или недостатки того монополии в этой отрасли? Дайте две минуты резюме того, что совершенной конкуренции. Во-первых, читать текст 1 раз и сделать примечания ниже на после, а затем представить поговорить с вашим класса. Что такое совершенной и несовершенной конкуренции? Что нужно, чтобы сделать идеальный Конкурс возможно? Почему то очень трудно создать идеальные конкуренция? Ответ на этот вопрос для сочинения: «Что делать Экономисты в виду, структура рынка? что виды рыночной структуры существуют? Как сделать различных структур рынка влияет на потребителей? ^ Эссе о структуре рынка Используйте этот план, чтобы помочь вам. Введение. Что такое структура рынка? Полезные слова и фразы: конкуренцию, конкуренцию, доля рынка, контроль над ценой Объясните совершенной и несовершенной конкуренции. Полезные слова и фразы: размер компании, доля рынка, совершенных субститутов, совершенных информации, барьеры, доступ Полезные слова и фразы: чистой монополии, естественные монополии, экономии на масштабе, поглощения, юридические монополии Скажите как рыночная структура влияет на потребителей. Полезные слова и фразы: цены производителей и цены заложников, разнообразие и выбор потребителей, качества Заключение. Подведение итогов в нескольких словах то, что рынок структура и как она влияет на потребителей. Источники информации:
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