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| A market structure in which a small number of interdependent firms compete. |
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| Anything that keeps news firms from entering an industry in which firms are earning economic profits. |
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| The situation when a firm's long-run average costs fall as it increase output. |
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| The exclusive right to a product for a period of 20 years from the date the product is invented. |
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| The study of how people make decisions in situations in which attaining their goals depends on their interactions with others; in economics, the study of decisions of firms where the profits of each firm depend on its interaction with other firms. |
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| Actions taken by a firm to achieve a goal, such as maximizing profits. |
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| A table that shows the payoffs that each firm earns from every combination of strategies by the firms. |
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| An agreement among firms to charge the same price or otherwise not to compete. |
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| A strategy that is best for a firm, no matter what strategies the other firm uses. |
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| A situation in which each firm chooses the best strategy, given the strategies chosen other firms. |
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| An equilibrium in a game in which players cooperate to increase their mutual payoff. |
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| Noncooperative equilibrium |
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| An equilibrium in a game in which players do not cooperate but pursue their own self-interest. |
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| A game in which pursuing dominant strategies results in noncooperation that leaves everyone worse off. |
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| A form of implicit collusion where one firm in an oligopoly announces a price change, which is matched by the other firms in the industry. |
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| A group of firms that collude by agreeing to restrict output to increase prices and profits. |
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