Microeconomics Chapter 14: Oligopoly: Firms in Less Competitive Markets

Anything that keeps new firms from entering an industry in which firms are earning economics profits.

Actions that a firm takes to achieve a goal, such as maximizing profits.

A group of firms that collude by agreeing to restrict output to increase prices and profits.

An agreement among firms to charge the same price or otherwise not to compete.

An equilibrium in a game in which players cooperate to increase their mutual payoff.

A strategy that is the best for a firm, no matter what strategies other firms use.

The situation when a firm's long-run average costs fall as it increases the quantity of output it produces.

The study of how people make decisions in situations which attaining their 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.

An equilibrium in a game in which players do not cooperate but pursue their own self-interest.

A market structure in which a small number of independent firms compete.

The exclusive right to a product for a period of 20 years from the date the patent is filed with government.

A table that shows the payoffs that each firm earns from every combination of strategies by the firms.

A table that shows the payoffs that each firm earns from every combination of strategies by the firms.

A game in which pursuing dominant strategies results in noncooperation that leaves everyone worse off.