Unit 10

Oligopoly - Market at which several firms sell standardized or differentiat­ed products and the control over the prices is limited with interdepen­dence of the firms.

price war - The cycle of the gradual prices reduction with the purpose to eliminate the competitors from the oligopolistic market.

secret conspiracy - The firms merger which agio Midi iln r. <>n |>i u . , .uni in­duction volumes in the way il'they m<< mln lli> pi »mpuls

cartel - Agreement on prices, market sharing And OtllBl restrictions OH competition in oligopoly.

price leadership - Unofficial method ol selling prices Ibi manufactured goods when one firm changes the price and other firms do the same soon.

general interdependence - The situation at which the price change (or some other parame­ter) by one firm causes the changes in the volume of sales and profits of the other firm.

broken curve of demand - The demand curve based on assumption that competing firms join the decision on the prices decrease and do not support decision on their increase.

pricing «cost plus» - Method of setting a target price for goods based on the average production costs by adding a definite percentage to them.

differentiated oligopoly - Oligopoly in which firms produce differentiated products.

Interbranch competition - Competition which occurs among the firms in one branch with the firms in the other branches.

Unit 11

the derivative demand - Demand for the good or service whieh depends on the demand for any other good or service.

marginal product - The change of the total revenue of a firm if it uses additional unit of resource.

marginal costs for resource - Growth of the total costs for the resource use if the firm uses ad­ditional unit of this resource.

correlation of resources which maximizes profit - Additional product produced under the use of additional unit of I resource.

the rule of equality of marginal product in money expression ami marginal costs for resource - The rule under which a firm, to maximize the economic profit,

: should use the resource volume under which MRR = MRC.

substitution effect in production - The influence of the resource price change on the quantity of this resource under condition if the firm does not change the output volume.

marginal product in money expression - MRR, / P_r = MRR_K /P_K = 1.

correlation of resources which minimizes the costs; marginal product - Production of any definite production volume under which the last money unit spent for each resource gives the same marginal pro­duct.

Unit 12

economic rent - The price for the land and other natural resources use, supply of ! which is constant.

Event which can’t be controlled and forecasted and which can result in loses which can’t be ensured,

nominal salary - Salary in money expression.

Investments into the human capital - Events used to increase the quality of workers’ labor by the way I of the increase of their qualification and abilities for development.

licensing of professions - Laws which declare permission to work in definite profession from the special bureau.

real salary - Quantity of the goods and services which a worker can purchase on salary.

real interest rate - Interest rate in money expression adjusted for inflation rate.

closed trade union - Trade unions practice which is aimed to restrict the labor force I supply the way of stopping hiring new members into them with the pur­pose to increase salary of workers which are the members of trade union already.

bilateral monopoly - Market in which a single seller (monopoly) opposes single buy­er (monopsony).

noncompetitive groups - Groups of workers who do not compete because the skill lev­el of one group significantly differs from the level of qualifications of the other groups.

competitive labor market - The market in which a lot of firms create the demand for specific type of employment seivices of the large number of non-union workers.

Monopoly - A market in which only one buyer of resource exists.