Chapter 15 Monopolistic Competition and Oligopoly Flashcards
1
Q
Oligopoly
A
A market with only a few firms, which sell a similar good or service.
2
Q
Monopolistic Competition
A
A market with many firms that sell goods and services that are similar but slightly different
3
Q
Product Differentiation
A
The creation of products that are similar to competitors’ products but more attractive in some ways.
4
Q
Dominant Strategy
A
A strategy that is the best one for a player to follow no matter what strategy the other players choose
5
Q
Nash Equilibrium
A
An equilibrium reached when all players choose the best strategy they can, given the choices of all other players
6
Q
Cartel
A
A number of firms who collude to make a collective production decisions about quantities or prices.
