Term
Market structure characterized by a
large number of buyers and sellers
Having an identical homgeneous product
No barriers to entry |
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Definition
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Term
| Demand curve for perfect competition is |
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Definition
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Term
| Firms only willing and able to supply output for levels if they can at least cover their ___ in the short run and ___ ATC in the long run. |
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Definition
AVC in short run
ATC in the long run |
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Term
| The horizontal summation of all the individual firm's supply curves |
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Definition
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Term
| In the long run, every competitive firm will earn __ that is ___ economic profit. |
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Definition
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Term
| In each competitive firm in long run equilibrium P=___=MinumumATC=_____ |
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Definition
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Term
| Monopolistically competitive industries characterized by: |
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Definition
Many producers
Heterogenous prodcut
No barriers to entry |
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Term
| Monopolists have some impact on ____. This comes from selling a _____ product. |
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Definition
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Term
| Long run equilibrium must satisfy the following three conditions |
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Definition
Each firm is selling at a price and output combo on its demand curve
Each firm is miximizing its profits, given the demand curve its facing
Entry has forced economic profits of each firm down to zero |
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Term
Someone could be made better off without making anyone else worse off
Output is below what it was in the perfectly competitive case |
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Definition
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Term
| Firms will typically be operating to the ____ of the level of output where their average cost is minimized. |
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Definition
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Term
Few producers
Heterogenous or homogenous
Barriers to entry |
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Definition
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Term
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Definition
| Strategic Interdependence |
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Term
| Barriers to entry include |
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Definition
Economies of scale
Reputation |
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Term
| Strategic barriers to entry |
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Definition
Excess production
Prime shelf space
Advertising |
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Term
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Definition
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Term
Firms who interact with respect to price and quantity and agree amongst selves to fix output quanity to level less than perfect comp and greater than or equal to monopoly levels
What is action called? |
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Definition
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Term
| A competitive situation in which two or more players persue their own interests and no one can dictate outcomes. |
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Definition
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Term
| A complete contingent of action for a player in a game |
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Definition
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Term
| A strategy that is best for a player no matter what the other player chooses |
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Definition
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Term
| A situation in which neither player has incentive to change his/her behavior |
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Definition
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Term
| A set of choices such that each player's choices are optimal regardless of what other player chose. |
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Definition
| Dominant strategy equilibrium |
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Term
| A situation in which no one can be made better off, without making someone worse off |
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Definition
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Term
| A situation in which every player of a game takes the best action for herself, given the actions taken by all other players. |
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Definition
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Term
| A market sturctue characterized by a single seller of a highly differentiated product. |
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Definition
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Term
| Basic characteristics of monopolies |
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Definition
Only one firm can survive
Large barriers to entry
Highly differentiated |
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Term
| Two things driving natural monopolies |
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Definition
Lumpy inputs
Very limited demand |
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Term
| One firm can produce at a lower cost/ unit than two or three firms |
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Definition
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Term
| Copyrights cover literary, artistic, and music for ___ years |
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Definition
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Term
| Patents cover scientific invention for ____ years |
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Definition
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Term
| The cost of leaving a network and learning a new system |
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Definition
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Term
| Monopoly barriers to entry |
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Definition
Economies of scale
Government blocks
Network externalities |
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Term
| Monopolists can't charge whatever they want because of |
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Definition
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Term
| Monopolists earn a profit whenever P>___ |
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Definition
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Term
| Selling different units of output at different prices |
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Definition
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Term
| Charging each customer the most that he would be willing and abel to pay for each item he buys |
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Definition
| First degree price discrimination |
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Term
| Charging the same customer prices based on use rates or quantities purchased |
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Definition
| Second degree price discrimination |
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Term
| Charging different prices to different classes or markets |
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Definition
| Third degree price discrimination |
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Term
| Charging different prices to different classes or markets |
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Definition
| Third degree price discrimination |
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