Profit Motive and Competition

Competition drives Jay Richards to do what he can to reduce costs and increase sales in order to increase profits. Of course, his competitors will be doing this too. They also want to earn the greatest profits. The profit motive (the efforts to maximize profits) is free enterprise’s most important incentive.

II. Exercises on the Text:

3. Text A. Give English equivalents to:

производители пытаются сократить издержки производства; дает возможность производителям продавать свои товары; путем повышения эффективности; конкуренция побуждает производителей; эта фирма получит большую прибыль; искать новые и привлекательные товары и услуги; конкуренция приносит пользу всем нам.

4. Text B. Ask questions for these answers (work in pairs):

1. David Scott usually works on weekends during the school year in summer.

2. He was a stock clerk.

3. It was in May and June because college students entered the local job market.

4. He was going to become a supervisor of the younger employees at the store.

5. He learned the computer-assisted inventory and ordering system and other special things.

6. Another store in town was advertising for someone with his skills.

7. He had established the small hardware store two years earlier.

8. He had been in competition with other buyers and sellers.

9. When he purchased the land for his store.

10. Yes, he did. He competed with other borrowers.

11. Yes, he did. He knew that he also had to compete for customers.

12. Because David had acquired skills that made him more productive.

5. Combine the words into sentences. Translate them into Russian.

1. could, his labor, David, else, sell, somewhere.

2. one other job, knew, from the newspaper ad, he, was available, at least.

3. who, there, many people, were, the same job, do, could.

4. entrepreneurs, always, and, competing, employees, are.

5. wanted, to reduce, in order to increase, Jay Richards, costs, and, profits, increase sales.

6. incentive, the profit motive, most important, is free, enterprise’s.