Chp.1 Intro to principles of Econ

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Across
  1. 4. an identifying symbol or name for a particular good and can only be used by the firm that registered that trademark
  2. 6. differentiation any action that firms do to make consumers think their products are different from their competitors'
  3. 7. profit profit of one more unit of output, computed as marginal revenue minus marginal cost
  4. 10. efficiency producing the optimal quantity of some output; the quantity where the marginal benefit to society of one more unit just equals the marginal cost
  5. 14. competition each firm faces many competitors that sell identical products
  6. 15. the long-run process of firms reducing production and shutting down in response to industry losses
  7. 18. equilibrium where all firms earn zero economic profits producing the output level where P = MR = MC and P = AC
  8. 20. competitive firms and organizations that fall between the extremes of monopoly and perfect competition
  9. 21. taker a firm in a perfectly competitive market that must take the prevailing market price as given
  10. 22. pricing when an existing firm uses sharp but temporary price cuts to discourage new competition
  11. 23. an oligopoly with only two firms
  12. 27. monopoly economic conditions in the industry, for example, economies of scale or control of a critical resource, that limit effective competition
  13. 28. a group of firms that collude to produce the monopoly output and sell at the monopoly price
  14. 30. competition many firms competing to sell similar but differentiated products
  15. 32. even point level of output where the marginal cost curve intersects the average cost curve at the minimum point of AC; if the price is at this point, the firm is earning zero economic profits
  16. 33. point level of output where the marginal cost curve intersects the average variable cost curve at the minimum point of AVC; if the price is below this point, the firm should shut down immediately
Down
  1. 1. structure the conditions in an industry, such as number of sellers, how easy or difficult it is for a new firm to enter, and the type of products that are sold
  2. 2. theory a branch of mathematics that economists use to analyze situations in which players must make decisions and then receive payoffs based on what decisions the other players make
  3. 3. product a product that consumers perceive as distinctive in some way
  4. 5. removing government controls over setting prices and quantities in certain industries
  5. 8. when firms act together to reduce output and keep prices high
  6. 9. demand curve a perceived demand curve that arises when competing oligopoly firms commit to match price cuts, but not price increases
  7. 11. property the body of law including patents, trademarks, copyrights, and trade secret law that protect the right of inventors to produce and sell their inventions
  8. 12. a government rule that gives the inventor the exclusive legal right to make, use, or sell the invention for a limited time
  9. 13. revenue the additional revenue gained from selling one more unit
  10. 16. dilemma a game in which the gains from cooperation are larger than the rewards from pursuing self-interest
  11. 17. the long-run process of firms entering an industry in response to industry profits
  12. 19. when a few large firms have all or most of the sales in an industry
  13. 24. monopoly legal prohibitions against competition, such as regulated monopolies and intellectual property protection
  14. 25. to entry the legal, technological, or market forces that may discourage or prevent potential competitors from entering a market
  15. 26. a situation in which one firm produces all of the output in a market
  16. 29. a form of legal protection to prevent copying, for commercial purposes, original works of authorship, including books and music
  17. 31. secrets methods of production kept secret by the producing firm