Econ Chapter 17

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  1. Typical firm in US economy
    has some degree of market power (oligopoly is a current dominant sector in US economy)
  2. Oligopoly
    Few sellers/firms that sell similar or identical products
  3. Monopolistic Competition
    • Many Buyers and sellers
    • Differentiated/similar products
    • Easy entry and exit
    • Non price competition (advertising)
  4. cartel
    group of firms acting in unison (ie OPEC)
  5. collusion
    An agreement among firms in a market about quantities to produce or prices to charge
  6. Nash Equilibrium
    A situation in which economic actors interacting with one another each choose their best strategy given the strategies that all the other actors have chosen
  7. Dominant Strategy
    Strategy that is best for a player in a game regardless of the strategies chosen by other players
  8. This is an example of duopoly
    two people oligopoly
  9. Prisoner's dilemma
    provides insights into the difficulty of maintaining cooperation
Card Set
Econ Chapter 17
Shah Chapter 17 Econ
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