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THE PROCESS of COMPETITION

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Competition exists in every aspect of life. Students compete for grades, college football team compete for national championships, government agencies compete for budget allocations, firms compete for customers. In each case, scarcity (1) causes the competition. Funds available to support government agencies are limited: defense and social agencies therefore compete for scarce budget dollars. There can be only one national champion in college football. College teams therefore compete for this distinction. If resources were not scarce, there would be no need for competition. Everyone could have everything he or she wanted.

Most people think of competition as the conduct of competitors. So the important question is: are the firms demonstrating rivalrous (2), competitive behavior when they are competing? Do they try to outperform one another? Do they use a variety of methods - advertising, a carefully chosen location, an attractive price - to win and keep customers? Do they look for the best managers? Are they innovative? The answer is clear: competition is a process of rivalry among firms.

This process of rivalry leads to better and cheaper products for consumers. Business firms compete to make profits, but because of the competitive process firms have to meet consumer needs at the lowest possible level of profit. As Adam Smith observed more than two hundred years ago, firm’s interest is used by the competitive process to promote the general well-being of society:

“It is not from the benevolence of the butcher, the brewer, or the baker, that we expect our dinner, but from their regard for their own interest (3). We address ourselves, not to their humanity but to their self-love, and never talk to them of our own necessities but of their advantages”.

In the process of competition the desire to satisfy individual self-interest leads to socially beneficial results, and for this reason economists put the study of the competitive process at the heart of their science.


Пояснения к тексту:

1. scarcity нехватка;

2. rivalrous сопернический;

3. «Мы надеемся получить свой обед не благодаря великодушию мясника,

пивовара или пекаря, а благодаря их заботе о своем собственном

интересе».


V.Ответьте на вопросы письменно:


1.
Why does competition exist?

2.
What does competition lead to?

3.
What promotes the general well-being of society according to Adam Smith?

 


IV вариант


I. Перепишите следующие предложения; подчеркните в каждом из них

глагол-сказуемое и определите его видо-временную форму и залог.

Переведите предложения на русский язык. Запишите все предложения в

вопросительной и отрицательной формах.


1. The number of people in the United States has reached 300 million.

2. They were negotiating the terms and conditions of the contract the whole

month.

3. The company will have produced 500 cars by the end of the year.


II. Перепишите следующие предложения; подчеркните в каждом из них

модальный глагол или его эквивалент. Предложения переведите.


1. Profit can take many forms although it is typically a monetary reward.

2. The firm was to start its advertising campaign two weeks ago.

3. Total output must rise faster than the increase in population.


III. Перепишите следующие предложения, подчеркните в них

придаточные предложения, укажите их тип (например, бессоюзное

определительное придаточное предложение или дополнительное

придаточное предложение, вводимое союзом that).


1. The manufacturers of the product who want to sell it may try to influence you

through an advertising campaign, but you make the complete and final

decision on the products that will best satisfy your desires.

2. Economists realize that the solution of the problem requires objectivity.

3. All the numerical information we can gain is very helpful.


IV. Перепишите и письменно переведите весь текст.





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