Imperfect Competition Crossword

7. Monopoly: a market condition in which the government provides a good or service and prevents the private sector from competing in the market
8. Dilemma: a particular "game" between two captured prisoners that illustrates why cooperation is difficult to maintain even when it is mutually beneficial
10. a market structure in which only a few sellers offer similar or identical products
12. Clayton Act 1914: an amendment passed by Congress that provided further clarification and substance to the Sherman Antitrust Act of 1890 on topics such as price discrimination, price fixing, and unfair business practices (prevented monopolies from forming through mergers)
13. a group of firms acting in unison
14. Discrimination: the business practice of selling the same good at different prices to different customers
15. a firm that is the sole seller of a product without any close substitutes

1. Strategy: a strategy that is best for a player in a game regardless of the strategies chosen by the other players
2. Pricing: action by one firm to set a price below its shutdown point in order to drive its competitors out of business (when businesses set prices below cost for a time in order to drive competitors out of the market)
3. Competition: a market structure in which many firms sell products that are similar but not identical
4. an agreement among firms in a market about quantities to produce or prices to charge
5. Theory: the study of how people behave in strategic situations
6. Monopoly: a type of monopoly that arises because a single firm can supply a good or service to an entire market at a lower cost than could two or more firms
9. Equilibrium: a situation in which economic actors interacting with one another each choose their best strategy given the strategies that all the other actors have chosen
11. Antitrust Act 1890: the first federal act that outlawed monopolistic business practices and the first measure by Congress to prohibit trusts (in order to reduce anti-competitive behavior)