Term
What is a model of tecit collusion?
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Definition
Price Leadership
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Term
What is Price Leadership Based on?
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Definition
The work of Heinrich Von Stuckelberg and Augustin Cournot
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Term
Where is Heinrich Von Stuckelberg from?
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Definition
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Term
Where is Augustin Cournot from?
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Definition
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Term
What firm determines/sets the industry price?
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Definition
The Biggest, most efficient firm
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Term
How many firms determine/sets industry price?
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Definition
A single firm
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Term
What are examples of Price Leadership?
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Definition
RJ Reynolds
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Kellogg Cereal (For a Time)
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General Motors (For a Time)
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Term
In an Oligopoly in which there is Price Leadership, what are the characteristics of dominant firm actions?
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Definition
Minimal Price Volatility
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Publicize the call for price changes
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Price may not maximize industry profit
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Term
In the long run a purely competitive firm, does what?
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Definition
Only break even, operate with productive efficiency, and charges price equal to marginal cost.
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Term
A firm is a natural monopoly if what?
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Definition
Economies of scale allow it to produce at lower costs than potential rivals.
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Term
In moving down the elastic segment of the monopolist's demand curve, total revenue is what?
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Definition
Increasing, and marginal revenue is positive.
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