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Definition
| a market dominated by a few sellers; large influence on the market price |
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| if the price does not change often even when there is a moderate change in cost |
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| a strategy that will yield a higher payoff than any of the other strategies that are possible |
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| one in which exactly the amount one competitor gains must be lost by other competitors |
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Term
| Herfindahl-Hirschman Index (HHI) |
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Definition
| an alternative measure of the degree of concentration of an industry; Calculated by adding together the squares of the market shares of the firms in the industry |
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Definition
| savings that are obtained through increases in quantities produced |
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Definition
| a demand curve that changes its slope abruptly at some level of output |
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Definition
| a group of sellers of a product who have joined together to control its production, sale, and price in the hope of obtaining the advantages of monopoly |
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Definition
| results when each player adopts the strategy that gives the highest possible payoff if the rival sticks to the strategy it has chosen |
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| the percentage of an industry’s output produced by its four largest firms |
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Definition
| a process established by law that restricts some specified decisions made by firms with monopoly power; it protects the public from exploitation by firms with monopoly power |
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Definition
| savings that are obtained through simultaneous production of many different products; they occur it a firm that produces many products can supply each good more cheaply than a firm that produces fewer products |
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Definition
| pricing that threatens to keep a competitor out of the market |
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Definition
| The ability of a business firm to earn high profits by raising the prices of its products above competitive levels and to keep those prices high for a long time |
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