Microeconomics chapter 26 and 28

A market situation in which large number of firms produce similar but not identical products. Entry into the industry is relatively easy

The distinguishing of products by brand name color and other minor attributes. Product differentiation occurs in other than perfectly competitive markets in which products are in theory the modernists such as wheat or corn

Advertising targeted at specific consumers typically in the form of postal mailing telephone calls or email messages

Advertising intended to reach as many consumers as possible typically through television newspaper radio or magazine ads

A product with characteristics that enable an individual to evaluate the product quality and in advance of a purchase

A product that an individual must consume before the product quality can be established

A product with qualities that consumers lack the expertise to assess without assistance

Advertising that emphasizes transmitting knowledge about the features of a product

Advertising that is intended to induce a consumer to purchase a particular product and discover a previously unknown taste for the item

An item that is produced using information intensive inputs at a relatively High fixed costs but it's tributed for sale at a relatively low marginal cost

A distinguishing characteristic of an information product arising from the colonies short run average total costs as more units of the product are sold

A market structure in which there are very few sellers each seller knows that the other sellers will react to these changes in prices quantities and qualities

A situation in which one person's actions with respect to price quality advertising and related changes may be strategically countered by the reactions of one or more firms in the industry. such dependence can exist only when there are limited number of major firms in an industry

The joining of a firm with another to which it sells and output or from which it buys an input

The joining of firms that are producing or selling a similar product

A percentage of all sales contributed by the leading 4 or leading 8 firms in the industry sometimes called the industry concentration ratio

The sum of the squared percentage sales shares of all firms in an industry

The manner in which one of the goblets reacts to a change in price output or quality made by another oligopolists in the industry

A way of describing the various possible outcomes in any situation involving two or more interesting individuals from those individuals are aware of the interactive nature of their situation and plan accordingly the plans made by these individuals are known as game strategies

A game in which the player is explicitly cooperate to make themselves jointly that are off as applied to firms it involves companies colluding in order to make higher than perfectly competitive rates of return

A game in which the player is neither negotiate nor cooperate in any way as applied to firms in an industry this is the common situation in which there are relatively few firms and each has some ability to change price

A game in which any games within the group are exactly offset by equal losses by the end of the game

A game in which players as a group lose during the process of the game

A game in which players as a group are better off at the end of the game

Any rule that is used to make a choice such as always pick heads

Strategies that always yield the highest benefit regardless of what other players do. a dominant strategy will yield the most benefit for the player using it

Action set Focus solely on Short Run games because long-run benefits of cooperation are perceived to be smaller

In Game Theory cooperation that continues as long as the other players continue to cooperate

An association of producers in an industry that agreed to set common prices and output quotas to prevent competition

A situation in which a consumer is willing this to purchase a good or service is influenced by how many others also buy or have bought the item

A tendency for a good or service to come into favor with additional consumers because other consumers have chosen to buy the item

A tendency for a good service to fall out of favor with some consumers because other consumers have stopped purchasing the item

A market in which an intermediary firm provides services that link groups of producers and consumers

The change in output resulting from the addition of one more worker the MPP of the work equals the change in total output accounted for by hiring the worker holding all of the factors of production constant

Marginal physical product (MPP) times marginal revenue (MRP). MRP gives the additional Revenue obtained from one unit change in labor input

The cost of using an additional unit of input. For example if a firm can hire all the workers it wants at the going rate the marginal factor of cost of Labor is that wage rate

Input Factor demand derived from demand for the final product being produced

A firm's employment of Labor outside the country in which the firm is located