Chapter 9

2. When rivals match a price change.
5. In an oligopoly, firms can benefit at the expense of consumer by agreeing to restrict output or equivalently, to charge higher prices.
6. Has a first mover advantage
11. Products in an oligopoly are different from each firms.
12. Follows the leader and maximizes profit given the output produced by the leader.
14. Has been criticized because it offers no explanation of how the industry settles on initial price P0 that generates the kink in each firm's demand curve. It is also the best tool for pricing decision.
16. Firms output decision has no effect on rivals out put decision.
17. There are relatively few large firms in an industry.
18. When rivals do not match a price change.
19. If in sweezy oligopoly they match the price, in cournot oligopoly they match the ___ produced.

1. Products in an oligopoly are similar from each firms.
3. Firms differ with respect to when they make decisions, a single firm chooses an output before their rivals select their output.
4. In a sweezy oligopoly this will be match by rivals if it is decrease and will not be match if it is increase.
7. Defines as the response of profit-maximizing level of output for a firm given output levels of the other firms.
8. A market in which all firms have access to same technology, consumers respond quickly to changes, and there is no sunk cost.
9. Bertrand oligopoly and __ products leads to zero economic profit and there is no deadweight loss.
10. The type of oligopoly that assumes the firms sell identical products and that consumers are willing to pay the monopoly price for the good.
11. Two firms create a oligopoly.
13. A situation where a firms change of its output doesn't affect the rivals output.
15. A function that defines combination of outputs produced by firms that yield a given firm the same level of profits.