Terms : Hide Images
| 11262974304 | Break-even price | the price at which economic profit is zero; price equals average total cost ex. Good for BIZ | 0 | |
| 11262974305 | shut-down price | The price where average revenue is equal to average variable cost. Below this price, the firm will shut down in the short run. Ex. Get out while you can! | 1 | |
| 11262974306 | short- run individual supply curve | Shows indivual firms profit ex. Graph shows profit! | 2 | |
| 11262974307 | industry supply curve | shows the relationship between the price of a good and the total output of the industry as a whole Ex. Graph that compares to industry | 3 | |
| 11262974308 | short run industry supply curve | Quanity supplied depending on the market price ex. graph shows supply | 4 | |
| 11262974309 | short-run market equilibrium | when the quantity supplied equals the quantity demanded, taking the number of producers as given. Ex. things are good, for now | 5 | |
| 11262974310 | Long-run market equilibrium | when the quantity supplied equals the quantity demanded, given that sufficient time has elapsed for entry into and exit from the industry to occur | 6 | |
| 11262974311 | long-run industry supply curve | shows how the quantity supplied responds to the price once producers have had time to enter or exit the industry | 7 | |
| 11262974312 | Public Ownership | the good is supplied by the government or by a firm owned by the government ex. Postal service | 8 | |
| 11262974313 | Price regulation | limits the price that a monopolist is allowed to charge ex. amtrak ticket prices | 9 | |
| 11262974314 | Single-price monopolist | offers its product to all consumers at the same price ex. Gasoline! | 10 | |
| 11262974315 | price discrimination | Division of customers into groups based on how much they will pay for a good ex. plane tickets | 11 | |
| 11262974316 | perfect price discrimination | Occurs when a firm charges the maximum amount that buyers are willing to pay for each unit. ex. plane tickets | 12 | |
| 11262974317 | Interdependent | When the outcome (profit) of each firm depends on the actions of the other firms in the market. ex. Wal-mart | 13 | |
| 11262974318 | Duopoly | An oligopoly with only two firms EX. DUOPOLIST ex. two gas stations in town | 14 | |
| 11262974319 | Collusion | (n.) secret agreement or cooperation ex. Both charge high price (mean) | 15 | |
| 11262974320 | Cartel | A formal organization of producers that agree to coordinate prices and production ex. not the drug cartel, money cartels! | 16 | |
| 11262974321 | noncooperative behavior | when firms ignore the effects of their actions on each other's profits ex. good! | 17 | |
| 11262974322 | Game theory | the study of how people behave in strategic situations ex. prisoners sentences | 18 | |
| 11262974323 | payoff | The pattern of benefits and costs associated with certain types of responses. ex. what to i get in the end | 19 | |
| 11262974324 | payoff matrix | a table that shows the payoffs that each firm earns from every combination of strategies by the firms ex. chart with 4 boxes on who gets the best | 20 | |
| 11262974325 | The prisoners dilemma | used to study cooperation. if one tells on the other they get less jail time.. blah blah ex. JAIL | 21 | |
| 11262974326 | dominant strategy | A strategy that is best for a player in a game regardless of the strategies chosen by the other players ex. Domination to win | 22 | |
| 11262974327 | strategic behavior | self-interested economic actions that take into account the expected reactions of others ex. to destory competitor, forecast | 23 | |
| 11262974328 | tit for tat | A strategy for the repeated prisoner's dilemma in which players cooperate on the first move, then mimic their partner's last move on each successive move. The most successful strategy in game theory. ex. one raise price, lower, repeat opposite | 24 | |
| 11262974329 | tacit collusion | when firms limit production and raise prices in a way that raises each others' profits, even though they have not made any formal agreement ex. agree price to make most money both | 25 | |
| 11262974330 | Antitrust policy | A policy designed to ensure competition and prevent monopoly, which is the control of a market by one company. ex. Gov laws, standard oil | 26 | |
| 11262974331 | price war | a collapse of prices when tacit collusion breaks down ex. price war to make $$$ | 27 | |
| 11262974332 | product differentiation | A strategy in which one firm's product is distinguished from competing products by means of its design, relates services, quality, location, or other attributes (except price) ex. amazing gas vs crap gas | 28 | |
| 11262974333 | Price Leadership | a form of implicit collusion in which one firm in an oligopoly announces a price change and the other firms in the industry match the change ex. takes the wheel | 29 | |
| 11262974334 | nonprice competition | Any attempt by a seller to attract customers from its competitors other than by lowering its prices. | 30 | |
| 11262974335 | zero-profit equilibrium | an economic balance in which each firm makes zero profit at its profit-maximizing quantity. ex. this is good | 31 | |
| 11262974336 | excess capacity | The difference between the monopolistic competition output Qmc and the output at minimum ATC. Excess capacity is underused plant and equipment ex. too much produceded | 32 | |
| 11262974337 | Brand name | A word, letter, or group of words or letters that differentiates one seller's goods and services from those of competitors. ex. exxon | 33 |
