Profit Maximization

Under pure competition, each individual firm is too small to influence price. Therefore, the firm views demand differently than the industry does. In a purely competitive market, supply and demand in the entire industry establishes the equilibrium price. After that price is set, each competitive firm selects a level of output that will maximize its profits at the market price.

II. Выберите английский эквивалент для следующих русских слов:

1. существовать	a) existent	b) exist
	c) existence	d) exit
2. конкурентный	a) compete	b) competition
	c) competitive	d) competitor
3. выбирать	a) select	b) selection
	c) selective	d) seldom
4. продавец	a) sell	b) selling
	c) selector	d) seller
5. условие	a) conditional	b) condition
	c) continue	d) conduction
6. предпочитать	a) prefer	b) preferable
	c) preference	d) preferment
7. различие	a) differ	b) different
	c) difference	d) differently
8. торговля	a) commence	b) commerce
	c) commercial	d) comment

III. Заполните пропуски, используя следующие предлоги:

a) between b) of c) according to d) over e) in f) against

1. Economists classify markets ... conditions that prevail in them.

2. The firms have a lot of influence ... price.

3. Buyers compete ... each other and ... the seller to obtain the best price.

4. Sellers and buyers must be well informed ... items for sale.

5. The competition ... buyers and sellers is one of the forces that keeps prices low.

6. Pure competition includes independent and well – informed buyers and sellers ... exactly the same product.

IV. Найдите в правой колонке русский эквивалент для английских словосочетаний:

1. to affect the price	a) рыночная цена
2. equilibrium price	b) большое количество
3. pure competition	c) вести дело
4. to attract customers	d) товары для продажи
5. to enter the market	e) равновесная цена
6. to set the price	f) влиять на цену
7. to conduct business	g) привлекать покупателей
8. a large number	h) устанавливать цену
9. market price	i) вступать в рынок
10. items for sale	j) чистая конкуренция

V. Укажите, на какие вопросы в тексте есть ответ yes (Y), а на какие – no (N):

1. When did Adam Smith publish his book «The Wealth of Nations»?

2. What is laissez – faire?

3. What is economics?

4. What are the conditions of creating pure competition?

5. How are markets classified?

6. What is the definition of private property?

7. What is marketing?