In ________, there is no deadweight loss and no consumer surplus as well, only producer surplus.
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Nash equilibrium
point where both players can do no better than the other given the choice of their opponent.
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Monopoly
market structure where there is only one firm producing a product.
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Natural monopoly
has large fixed costs, and long economies of scale, has downward sloping ATC curve.
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Cartels
a group that agrees to control the price and output of a product (often form in oligopoly)
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Firms
________ are able to make an increased profit in the long run if there is less competition since ________ are considered to be price makers.
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Monopolistic competition
is another term for imperfect competition, and occurs when many companies offer competing products which are similar but not perfect substitutes.
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Payoff matrix
represents the payoff to each player to show combinations of given strategies.
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Interdependent
all the actions that a firm takes will affect the other firms in the oligopoly (if They ask why the market is an oligopoly, say it’s because they’re interdependent)
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Common barriers to entry
control of scarce resources, legal barriers, high startup costs.
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Common barriers to entry
control of scarce resources, legal barriers, high startup costs
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Monopoly
market structure where there is only one firm producing a product
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14
Natural monopoly
has large fixed costs, and long economies of scale, has downward sloping ATC curve
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Imperfect price discrimination
charging consumers different prices based on the buyers willingness to pay
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Perfect price discrimination
charges all consumers the maximum they are willing to pay, no deadweight loss, produce at P=MC
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17
Monopolistic competition
is another term for imperfect competition, and occurs when many companies offer competing products which are similar but not perfect substitutes
New cards
18
Interdependent
all the actions that a firm takes will affect the other firms in the oligopoly (if They ask why the market is an oligopoly, say its because theyre interdependent)
New cards
19
Cartels
a group that agrees to control the price and output of a product (often form in oligopoly)
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Collusion
working together to maximize profit
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Payoff matrix
represents the payoff to each player to show combinations of given strategies
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22
Dominant strategy
the strategy that has a better payoff regardless of what strategy the opponent chooses
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Nash equilibrium
point where both players can do no better than the other given the choice of their opponent
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