Chapter 15 Flashcards
1
Q
Oligopoly
A
A market structure in which:
- Natural or legal barriers prevent the entry of new firms.
- A small number of firms compete
2
Q
Duopoly
A
An oligopoly market with two firms.
3
Q
Cartel
A
A group of firms acting together - colluding - to limit output, raise price and increase economic profit.
4
Q
Game theory
A
A set of tools for studying strategic behavior - behavior that takes into account the expected behavior of others and the recognition of mutual interdependence.
5
Q
Collusive agreement
A
An agreement between two producers to form a cartel to restrict output, raise the price and increase profits.
