Chapter 21 Flashcards
1
Q
Collusion
A
Informal agreements between firms to restrict competition
2
Q
Interdependence
A
Where the actions of one country or large firm will have a direct effect on others
3
Q
Price war
A
Where one firm in the industry reduces price causing others to do the same
4
Q
Superior
A
Better in quality than other things of the same kind
5
Q
Cartel
A
When a group of firms or countries join together and agree on pricing or output levels in the market
6
Q
What are the main features of an Oligopoly?
A
- Few firms
-Large firms dominate
-Different products
-Barriers to entry
-Collusion
-Non-price competition
-Price competiton
7
Q
Oligopoly
A
A market dominated by a few firms
8
Q
Advantages and Disadvantages of an Oligopoly
A
PIQCC
-Price wars between Oligopolies
-Innovation
-Quality
-Choice
-Collusion and cartels fixing high prices
