V. Conversational English Agreement

Yes, I agree entirely here	I am of the same opinion
That’s a good point	That’s just what I was thinking

Disagreement

There maybe something in what you say but…	I see your point but…
Just the other way round!	I’ve got some reason to disagree.

Exercise 50. Study the advantages and disadvantages of monopolies and discuss them with your partner. Do you agree with the information given? Give your reasons. Express agreement or disagreement when discussing these issues.

№	Advantage of monopoly	Disadvantages of monopoly
1.	exploitation of consumers	no risk of over production
2.	there is enough capital for research	restriction of consumers choice
3.	absence of competition leads to inefficiency	reduction in price of good
4.	increase in price of product	efficiently use of recourse
5.	exploitation of labor i.e. when price is greater than marginal cost

Exercise 51. Study the table and answer the question. Discuss the answer with your partner. Express agreement or disagreement.

Question: For the monopolist shown in the chart, which of the following price and quantity combinations is optimal?

Price = $25, Quantity = 150 Price = $30, Quantity = 140 Price = $55, Quantity = 90 Price = $70, Quantity = 60

You can solve the problem from first principles – maximize profits

Quantity	Price	TR	Total Costs	TR – Total Costs
0	100	0	800	-800
10	95	950	1 500	-550
20	90	1 800	2 450	-650
30	85	2 550	2 800	-250
40	80	3 200	3 300	-100
50	75	3 750	3 450	300
60	70	4 200	3 710	490
70	65	4 550	3 820	730
80	60	4 800	3 900	900
90	55	4 950	4 000	950
100	50	5 000	4 100	900
110	45	4 950	4 250	700
120	40	4 800	4 450	350
130	35	4 550	4 650	-100
140	30	4 200	4 950	-750
150	25	3 750	5 250	-1 500
160	20	3 200	5 650	-2 450
170	15	2 550	6 150	-3 600
180	10	1 800	6 850	-5 050
190	5	950	7 650	-6 700
200	0	0	8 850	-8 850

Exercise 52. Render the text in English. What are the reasons for the natural monopoly to exist in economy?