ECON 101 Ch. 17 Oligopoly

game theory

the study of people behave in strategic situations

C. Either similar or identical products D. Mutual interdependence

An oligopoly market structure is distinguished by several characteristics, 2 of which are market control by a few large firms and difficult entry. What are some other characteristics of this market structure? (Select all that apply) A. Neither mutual interdependence nor mutual dependence B. Identical products only C. Either similar or identical products D. Mutual interdependence

B. Perfect competition only

In which of the following market structures do firms produce at an efficient output level? A. Monopoly and oligopoly only B. Perfect competition only C. Monopolistic competition only D. Perfect competition, monopolistic competition, monopoly, and oligopoly

cartel

a group of firms acting in unison

oligopoly

a market structure in which only a few sellers offer similar or identical products

prisoners' dilemma

a particular game between two captured prisoners that illustrates why cooperation is difficult to maintain even when it mutually beneficial

Nash equilibrium

a situation in which economic actors interacting with one another each choose their best strategy given the straggles that all the other actors have chosen

Tit-for-Tat Strategy

a strategy in which a player cooperates until the other player defects and then defects until the other player cooperates again

dominant strategy

a strategy that is best for a player in a game regardless of the strategies chosen by the other players

collusion

an agreement among firms in a market about quantities to produce or prices to charge