Exercise 2. Decide whether these statements are True (T) or False (F)

1. The theory of production deals with a period of production that allows producers to change the amount of labour used.

2. The law helps answer the question: How is the output of final product affected as more units of one variable input or resource are added to fixed amount of other resources?

3. Instage one of production the more workers are hired the less are the returns.

4. When an additional worker is added, the marginal revenue computation changes according to the stage of production.

5. When marginal cost is less than marginal revenue, more variable inputs should be hired to expand output.

 

Exercise 3. Study the explanation of special terms

output (n) - the amount of goods or services produced by a person, machine, factory, company, etc.

input (n) - ideas, advice, effort, o\ money that you put into something to help it succeed

factor of production - something that is needed to produce a particular product

diminishing return - the idea that a point can be reached where the advantage or profit you are getting, stops increasing in relation to the effort you are making

marginal (аdj) - relating to a change in a cost, value, etc. when one more thing Is produced, one more dollar is earned, etc.

costs (n) - money that a business or an individual must regularly spend

fixed costs - costs to a business that do not change when the amount of goods or services produced does

incur (v) - if you incur a cost, a debt, or a fine, you do something that means that you lose money or have to pay money

overhead costs - costs not directly related to a particular product or service, but related to general costs for buildings, equipment, etc.

interest (n) - an amount paid by a borrower to a lender, for example to a bank by someone borrowing money for a loan or by a bank to depositor

charges (n) - an amount of money paid for services or goods

rent payment - money paid for the use of a house, office, etc.

lease (v) - to give somebody the right to use something for a particular period of time in return for payment

depreciation (n) - decreasing in value over a period of time

variable costs - costs that change when the amount of something produced changes

rate of operation - capacity of work done by a company or machine

marginal cost - the extra cost of producing one more of something

self-service (n) - a self-service shop, restaurant, etc. is one in which customers get the goods themselves and then go and pay for them

lot (n) - an area of land on which nothing has been built and which may be available to rent, or build on

revenue (n) - money that a business or organization receives over a period of time, especially from selling goods or services

break-even (adj) - when a company is neither making a profit or a loss

 

Exercise 4. Give English equivalents to the following words and expressions

фиксированные затраты; самообслуживание; безубыточный; норма загрузки производственных мощностей; доход, выручка; переменные издержки; накладные расходы; износ; сокращающийся доход; фактор производства.

 

Exercise 5. Choose an appropriate word or expression from the box to complete the following sentences.

	returns costs fixed cost incurred rents leased depreciation interest

1. Commercial ______ have decreased significantly since their peak in 1997.

2. The East Moline foundry has been operating at less than 50 % capacity and has _______ significant operating losses.

3. The _______ is the added output resulting from employing one more worker.

4. Their retail branches are a _______, so the more business they put through them the better.

5. Delay in construction could increase _______ significantly.

6. Chrysler might run out of money to pay _______ on its bonds.

7. The proposed site of the factory may lead to _______ of property value in the immediate vicinity.

8. The local authority _______ him the property.

 

Exercise 6. 9 Listening