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| market structure in which barriers to entry are low and many firms compete by selling similar, but not identical, products |
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market structure in which a small number of interdependent firms compete.
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| Anything that keeps new firms from entering an industry in which firms are earning economic profits. |
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| situation when a firm’s long-run average costs fall as the firm increases output. |
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| exclusive right to a product for a period of 20 years from the date the patent is filed with the government. |
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| study of how people make decisions in situations in which attaining their goals 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. |
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| table that shows the payoffs that each firm earns from every combination of strategies by the firms. |
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| A strategy that is the best for a firm, no matter what strategies other firms use. |
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| A situation in which each firm chooses the best strategy, given the strategies chosen by other firms. |
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| equilibrium in a game in which players cooperate to increase their mutual payoff. |
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| Noncooperative equilibrium |
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| equilibrium in a game in which players do not cooperate but pursue their own self-interest. |
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| game in which pursuing dominant strategies results in noncooperation that leaves everyone worse off. |
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| firm that is the only seller of a good or service that does not have a close substitute. |
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| government-granted exclusive right to produce and sell a creation |
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A government designation that a firm is the only legal provider of a good or service.
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situation in which the usefulness of a product increases with the number of consumers who use it.
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A situation in which economies of scale are so large that one firm can supply the entire market at a lower average total cost than two or more firms.
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