Microeconomics Chapter 14: Oligopoly: Firms in Less Competitive Markets

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Drizzle
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288045
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Microeconomics Chapter 14: Oligopoly: Firms in Less Competitive Markets
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2014-11-03 20:02:03
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Microeconomics
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Chapter 14
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  1. Barrier to entry
    Anything that keeps new firms from entering an industry in which firms are earning economics profits.
  2. Business strategy
    Actions that a firm takes to achieve a goal, such as maximizing profits.
  3. Cartel
    A group of firms that collude by agreeing to restrict output to increase prices and profits.
  4. Collusion
    An agreement among firms to charge the same price or otherwise not to compete.
  5. Cooperative equilibrium
    An equilibrium in a game in which players cooperate to increase their mutual payoff.
  6. Dominant strategy
    A strategy that is the best for a firm, no matter what strategies other firms use.
  7. Economies of scale
    The situation when a firm's long-run average costs fall as it increases the quantity of output it produces.
  8. Game theory
    The study of how people make decisions in situations which attaining their depends on their interactions with others; in economics, the study of the decisions of firms in industries where the profits of a firm depend on its interactions with other firms.
  9. Noncooperative equilibrium
    An equilibrium in a game in which players do not cooperate but pursue their own self-interest.
  10. Oligopoly
    A market structure in which a small number of independent firms compete.
  11. Patent
    The exclusive right to a product for a period of 20 years from the date the patent is filed with government.
  12. Payoff matrix
    A table that shows the payoffs that each firm earns from every combination of strategies by the firms.
  13. Price leadership
    A table that shows the payoffs that each firm earns from every combination of strategies by the firms.
  14. Prisoner's dilemma
    A game in which pursuing dominant strategies results in noncooperation that leaves everyone worse off.

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