V. Answer the following questions:

1. When do markets exist?

2. What does a perfectly competitive market require?

3. What are Public Utilities?

4. Why are they granted a monopoly?

5. What is a trademark?

6. In what way does the competition among producers benefit us all?

7. How can many businesses grow and control as much of a market as possible?

8. How many categories do mergers fall into? Name them.

VI. Define the terms:

interchangeable to fix prices

to influence the market conglomerate merger

single management competitive market behavior of a market

VII. Translate into English:

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HMU.T80.

VIII. Read and dramatize the following dialogue:

L.: What of the world's well-known economists do you know? A.: Well, Joan Robinson (1903—1983) taught economists at England's Cambridge University for more than 40 years. Her book «The Economics of Imperfect Competitionn (1933), led her to be recognized as one of the world's foremost economists. L.: Taking their cue from Alfred Marshall, economists of the 1930's based their theories on the concepts of perfect competition and monopoly. A.: Did perfect competition often occur? L.: No it didn't. Perfect competition, with its many buyers and sellers, all of whom had perfect knowledge of market conditions, rarely occured. Neither for that matter, did perfect monopoly wherein buyers, unable to find substitutes paid a price selected by the monopolist. What usually happened was something in between the extremes of perfect competition and monopoly. A.: In what way did Professor Robinson refer to this kind of

trade? L: She referred to this kind of trade as imperfect competition. Robinson's «lmperfect Competition» described markets in which sellers had more freedom to determine prices than they would have under perfect competition, but less than they have under pure monopoly. They had this freedom either because their products were sold under conditions of monopolistic competition, or oligopoly. Are there any weaknesses of capitalism? A.: Joan Robinson regarded imperfect competition as a major weakness of capitalism. Why? By commanding a higher price than they might have under perfect competition, she said, businesses earn higher returns while consumers have to find ways to do with less. Meanwhile, the economy operates at levels under its capacity to employ workers and produce goods and services. L.: She concluded that conditions of underproduction and unemployment inevitably lead to periodic recessions and political unrest.