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13 Cards in this Set
- Front
- Back
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natural monopolies |
economies of scale allow only a single seller to achieve lowest average total cost |
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market failure |
when markets produce outcomes that are inefficient or inequitable |
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crown corporations |
publicly owned businesses in Canada Ex: Canada Post, GO Transit, etc. |
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Rate of return regulation |
sets a price allowing the regulated monopoly to just cover average total costs, including normal profits |
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game theory |
a mathematical tool for understanding how players make decisions, taking into account what they expect rivals to do |
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prisoners' dilemma |
a game with two players who must each make a strategic choice, where results depend on the other player's choice |
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Nash equilibrium |
outcome of a game in which each player makes her own best choice given the choice of the other |
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collusion |
a secret or illegal cooperation or conspiracy, in order to cheat or deceive others |
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cartel |
association of supplies formed to maintain high prices and restrict competition |
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Caveat Emptor ("Buyer beware") |
the buyer alone is responsible for checking the quality of products before buying |
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public-interest view |
government regulation eliminates waste, achieves efficiency, and promotes the public interest |
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capture view |
government regulation benefits the regulated businesses, not the public interest |
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government failure |
when regulations fail to serve the public interest |
