Term
| The Sherman Act prohibited... |
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Definition
| collusive price agreements among rival sellers |
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Term
| A monopolistically competitive firm earning profits in the short run will find the demand for its product decreasing and becoming more elastic in the long run as new firms move into the industry until... |
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Definition
| The firm's demand curve is tangent to its average total cost curve |
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Term
| A monopolist is a seller who... |
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Definition
| Can ignore the threat of competition from other firms |
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Term
| The prisoners' dilemma results in a noncooperative equilibrium because... |
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Definition
| Each player has a dominant strategy to play a certain way regardless of what other players do |
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Term
| Patents, occupational licensing, tariffs and quotas are all examples of... |
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Definition
| Government-imposed barriers |
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Term
| A monopolistically competitive firm that is earning profits will, in the long run, experience... |
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Definition
| Demand decreases, demand for the firms product becomes more elastic, and new rivals entering the market |
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Term
| Among the characteristics that monopolistic competition and perfect competition share is... |
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Definition
| Many small independently acting sellers, low barriers to entry into the industry by new firms, and the typical firm breaks even in the long run |
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Term
| With a prisoners' dilemma each prisoner's dominant strategy is to... |
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Definition
| Confess, because this is best regardless of what the other prisoner does |
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Term
| The key characteristics of a monopolistically competitive market structure include... |
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Definition
| All sellers sell a differentiated product |
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Term
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Definition
| Where each player chooses its best strategy, given the strategies chosen by the other players |
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Term
| A monopoly is a seller of a product... |
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Definition
| Without a close substitute |
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Term
| A monopolistically competitive firm maximizing profits will produce at a price that is... |
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Definition
| Greater than marginal cost |
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Term
| To sell more output, the monopolist... |
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Definition
| has to advertise the product extensively |
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Term
| How does the long run equilibrium of a monopolistically competitive industry differ from that of a perfectly competitive industry? |
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Definition
| In long-run equilibrium, a monopolistically competitive firm price will be higher than the average cost of production |
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Term
| The DeBeers Company of South Africe was able to block competition by... |
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Definition
| Ownership of an essential input |
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Term
| If a monopolistically competitive firm is producing at an output where marginal revenue is $12 and marginal cost is $12, then to maximize profits this firm will... |
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Definition
| Continue to produce the same quantity |
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Term
| Member firms of a cartel like OPEC have incentives to... |
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Definition
| Argue for larger production quotas for each member of the cartel |
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Term
| A monopolistically competitive firm cuts its price from $10 where it sold 25 units to $9 and sells five more units of output, its marginal revenue is... |
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Definition
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Term
| A decision tree is good at analyzing... |
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Definition
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Term
| What is the purpose of advertising by a monopolistically competitive firm? |
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Definition
| Earn more economic profit for the firm, increase demand for the firm's product, and make the demand for the firm's product more inelastic |
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Term
| The key characteristics of a monopolistically competitive market structure include... |
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Definition
| Few sellers, high barriers to entry, sellers selling similar but differentiated products |
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Term
| A dominant strategy in a game theory analysis of oligopoly behavior is... |
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Definition
| A strategy that is the best for a firm, no matter what strategies other firms use |
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Term
| Is a monopolistically competitive firm allocatively efficient? |
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Definition
| It is NOT because it does not produce at minimum average total cost |
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Term
| A prisoners' dilemma leads to.. |
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Definition
| Noncooperative equilibrium |
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Term
| Economic efficiency in a market occurs when... |
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Definition
| Price is as low as possible |
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Term
| An example of a government-imposed barrier is... |
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Definition
| The granting of a patent to a particular firm |
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Term
| The average person mostly patronizes firms that operated in... |
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Definition
| Monopolistically competitive markets |
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Term
| A market economy benefits from market power... |
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Definition
| If firms with market power do research and development with the profits earned |
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Term
| If buyers of a monopolistically competitive product feel the products of different sellers have little differences between them, then.... |
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Definition
| The demand for each seller's product is relatively elastic |
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Term
| A possible advantage of a horizontal merger for the economy is... |
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Definition
| The merging of firms could avoid losses |
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Term
| What type of demand does a monopolistically competitive firm face? |
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Definition
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Term
| If a monopolistically competitive firm is producing at an output where marginal revenue is $111.11 and marginal cost is $118, then to maximize profits the firm will... |
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Definition
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Term
| For a monopolistically competitive firm... |
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Definition
| Marginal revenue is less than price |
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