Ex 4. Match each term with the appropriate explanation. competition, monopoly, oligopoly, internal competition, incentive, pure monopoly

competition, monopoly, oligopoly, internal competition, incentive, pure monopoly

1. Something that gives one a desire to work harder, or to do something that he hasn’t done before.

2. A market in which there are only a few sellers.

3. The situation in which one seller or a group of sellers acting together can control the market price.

4. The situation in a market in which there is only one seller of a commodity and he therefore faces no competition.

5. Rivalry within the company, e.g. between its branches or divisions.

6. Rivalry between business concerns in the same market, usually in selling at the lowest price or in giving better quality or generally offering better value for money.

Ex 5. Answer the questions and do the assignments.

1. What is implied on the notion “competition” generally?

2. What role does competition play in the market?

3. Expand on advantages of competition for firms and consumers.

4. Are there any disadvantages of competition for those involved?

5. How has economic competition been classified? Characterize each form.

6. Give examples of internal competition.

7. What are the cases when competition may be legally restricted or prohibited? How is the pure competition regulated?

8. What does the notion “monopoly” imply?