Key Words and Phrases

increase in productivity	зростання виробництва
output per hour of work	обсяг виробництва, випуск продукції за годину
boosting productivity	зріст, збiльшення продуктивності
cutbacks	скорочення штату
layoffs	тимчасове звільнення з роботи
counterparts	колеги по роботі

Exercises on the text:

Ex. 1. Read and translate the text.

Ex. 2. Answer the following questions:

1. What is meant by the term productivity?

2. Why is productivity an important public issue today?

3. How does the United States compare to other nations in regard to productivity?

Ex. 3. Give Ukrainian equivalents for the following words and word combinations:

output per hour of work; goods and services produced in a given period of time; major concern; lagging behind that of other countries; climbed at a record pace; to rate better in productivity; boosting productivity in service industries; the biggest long-term challenge; in the country's economic health; more competitive by lowering costs.

Ex. 4. Fill in the blanks with noun, verb or adjective forms. Use your dictionary if necessary.

	Noun	Verb	Adjective
	division	divide	dividual
	—	economize	—
	recording	—	—
	employment	—	—
	—	—	impressive
	—	design

Ex. 5. Discussion question.

Explain the concepts of gross domestic product and productivity.

P A R T III

Competition unit 18 Types of Competition

Four basic degrees of competition exist in a private enterprise system: pure competition, monopolistic competition, oligopoly, and monopoly. We can classify firms on the basis of the relative competitiveness of their particular industry.

Pure Competition

In pure competition, there are many firms in an industry, and they are close enough in size that no single company can influence the prices charged in the marketplace. Pure competition involves similar products that cannot be differentiated from those of competitors. In a purely competitive market, it is relatively easy for a firm to enter or leave that market. Agriculture is probably the closest example of pure competition (although government price-support programs make it somewhat less competitive) and wheat is an example of a product that is similar from farm to farm.

Monopolistic Competition

Monopolistic competition is a market situation where firms are able to differentiate their product from those of competitors. You can see monopolistic competition operating when you watch commercials that try to persuade you to choose one brand over another. Monopolistic competition gives a firm some power over the price it charges. Think about retail stores, where prices can vary among different brands of aspirin, toothpaste, or gasoline.

For instance, there are many companies that can produce the beef you decide to buy for dinner. Coleman Natural Meats, Inc., a family-run business based in Denver, differentiates its product from the competition by advertising that its meats are just that–natural. Unlike many beef producers, Coleman does not feed its cattle hormones or antibiotics. Owner Mel Coleman, Sr., feels that this difference, given Americans' growing concern about the environment and good nutrition, makes his company stand out from the crowd–and allows it to charge prices that average 25 percent higher than those of its competitors.

Oligopoly

Oligopoly is a market in which there are few sellers. In some oligopolies such as steel, the products are similar; in others, such as automobiles, they are different. The huge investment required to enter the market tends to discourage new competitors. But the primary difference between oligopoly and the previously mentioned types of competition is that the limited number of sellers gives the oligopolist more control over price. In an oligopoly, the prices of competitive products are usually quite similar because substantial price competition would lessen every firm's profits. Price cuts by one firm in the industry are typically met by all competitors.

Monopoly

Monopoly is a market situation in which there are no competitors. Since the Sherman and Clayton Acts prohibit attempts to monopolize markets, nearly all the monopolies in the U.S. are government regulated monopolies, such as the public utilities. Firms selling electricity and natural gas are regulated by state agencies in the United States. These agencies administer many aspects of the regulated monopolies, including pricing and profits. In a pure monopoly a firm would have substantial control over pricing, but in a regulated monopoly, pricing is subject to rules imposed by the regulators. There are few directly competitive products in a regulated monopoly, and entry into the industry is restricted by the government. In fact, in some states, a public utility must periodically seek voter approval to continue its service.