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17 Cards in this Set
- Front
- Back
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Monopolistic competition |
Relatively large number of sellers selling differentiated products. Copper steel |
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Product differentiation |
Variations of a different product |
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Nonprice competition |
Heavy advertising done by monopolists to make product differences a greater factor |
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Firm firm concentration ratio |
Ratio of output of four largest firms in an industry |
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Herfindahl index |
Sum of squared percentage market shares of all firms in the industry |
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Excess capacity |
Plant and capital that are under used because firms are producing less than the minimum atc output |
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Homogenous oligopoly |
Standardized goods |
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Differentiated oligopoly |
Differentiated products automobiles tires spurring goods |
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Strategic behavior |
Self interested behavior that takes into account the reactions of others |
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Mutual interdependence |
Each firms profit depends on those of the other firms in its highly concentrated industry as well a its self |
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Interindustry competition |
Competition between two products associated with different industries |
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Game theory |
Study of how people react in strategic situations |
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Collusion |
Cooperation with rivals |
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Kinked demand curve |
Demand is highly elastic above price but less elastic or inelastic below |
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Price war |
Successive and continuous rounds of price cuts by rivals as they attempt to maintain their market shares |
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Cartel |
Group off producers that cone across a price agreement |
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Price leadership |
Price coordination without outright collusion |
