Term
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Definition
| In ________ competition, indvidual firms have some power in a particular product market. |
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Term
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Definition
| A situation in which only a few firms have a great deal of power in a product market. |
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Term
- Number of producers
- Size of each firm
- Barriers of entry
- Avaliabilty of Substitute Goods
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Definition
| The determinants of market power include: |
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Term
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Definition
| There are ____ firms in an oligopoly market structure. |
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Term
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Definition
| The barriers of entry in an oligopoly market structure are ______. |
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Term
| Similar, not identical products |
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Definition
| The products in an oligopoly market structure are ________. |
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Term
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Definition
| An imperfect competition industry subject to potential entry if prices or profits increase. |
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Term
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Definition
| Ease of entry into an industry ____ the ability of a powerful firm to dicates prices and product flow. |
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Term
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Definition
| A measure of market power that relates the size of firms to the size of the product market. |
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Term
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Definition
| An industry with a concentration ratio above _____ percent is considered an ________. |
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Term
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Definition
| One of the dominant firms in an oligopoly. |
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Term
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Definition
| The precentage of total market output produced by a single firm. |
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Term
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Definition
| In an obligopoly, increased sales on the part of one firm will be ________ _________ by the other firm. |
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Term
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Definition
| Increases in the market share of one opligopolist necessarily _____ the shares of the remaining oligopolists. |
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Term
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Definition
| Features that make one product appear different from competing products in the same market. |
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Term
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Definition
| An attempt by one oligopolist to increase its market share bu cutting price will lead to a _____ ______ in the market price. |
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Term
| Prices will only decrease, causing the firms to lose money |
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Definition
| Oligopolists avoid price competition and instead pursue nonprice competition because ______. |
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Term
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Definition
| Industry produces 1 million products with the four largest producing 700,000 of the products. The concentration ratio of the firms is _____. |
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Term
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Definition
| Because firms make decisions based on their competitors, they are _______ ________. |
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Term
| response of rival oligopolists |
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Definition
| The degree to which an oligopolists sales increased when its price is reduced depends on the _____ _______ _______ ________. |
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Term
| What is the demand curve facing an oligopolist? |
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Definition
| The demand curve is undetermined until rival's reaction is specified. |
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Term
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Definition
True or False?
We can expect rival oligoplists to match any price reduction, but they may choose not to match price increases. |
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Term
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Definition
| The demand curve will be ______ if rival oligopolists match price reductions but not price increases. |
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Term
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Definition
| In an oligopoly market structure prices tend to be stable due to the fact firms believe rival will match their price decreases. |
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Term
A shared monopoly.
An oligopoly will behave like a monopoly, choosing a rate of industry output that maximizes total industry profits. |
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Definition
| An oligopoly can also be defined as : |
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Term
- Industry output and price are maintained at profit-maximizing levels.
- Each oligopolistic firm is content with its market share.
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Definition
| Oligopolist must coordinate their production decisions so that: |
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Term
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Definition
Explicit agreements among prodcuers regarding the price(s) at which a good is to be sold.
This is no longer legal in America. |
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Term
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Definition
| An oligopolistic pricing pattern that allows one firm to establish the (market) price for all firms in the industry. |
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Term
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Definition
| A group of firms with an explicit, formal agreement to fix pries and output shares in a particular market. |
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Term
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Definition
| Temporary price reductions designed to alter market shares or drive out competition. |
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Term
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Definition
| ______________ cannot be maintained over the long run unless barries to entry exist. |
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Term
| Patents, distribution control, mergers, goverment regulation |
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Definition
| Barriers to entry include: |
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Term
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Definition
| ________ not only strengthens brand loyalty but also makes it expensive for new producers to enter the market. |
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