Reading...
Play button
Play button
Use LEFT and RIGHT arrow keys to navigate between flashcards;
Use UP and DOWN arrow keys to flip the card;
H to show hint;
A reads text to speech;
10 Cards in this Set
- Front
- Back
|
OLIGOPOLY
|
A situation in which a particular market is controlled by a small group of firms. Ex. The oil industry is a good example os an OLIGOPOLY because a small number of firms control a large majority of the market.
|
|
|
CONCENTRATION RATIO
|
The concentration ratio indicates wether an industry is comprised of a few large firms or many small firms. The four-firm concentration ratio, which consist of the market share of the four largest firms in an industry, is a commonly used concentration ratio.
|
|
|
DUOPOLY
|
A situation in which two companies own all or nearly all of the market for a given type of product.
|
|
|
CARTEL
|
A cartel is a formal agreement among competing firms. It is a formal organization of producers and manufactures that agree to fix prices.
|
|
|
PRICE FIXING
|
Establishing the price of a product of service, rather than allowing it to be determined naturally through free market forces. This procedure is often an illegal practice.
|
|
|
GAME TREE
|
A graphical representation of the consequences of different actions in a strategic setting.
|
|
|
DUOPOLISTS' DILEMMA
|
Although both firms would be better off if they picked the high price, each firm picks the low price.
|
|
|
NASH EQUILIBRIUM
|
An outcome of a game in which each player is doing the best he or she can, given the action of the other players.
|
|
|
LOW PRICE GUARANTEE
|
A promise to match a lower of price competitor.
|
|
|
PRICE LEADER SHIP
|
A situation in which a market leaders sets the price of a product or service, and competitors feel compelled to match the new price.
|
