micro chapter 9
Across
- 2. demonstrates why a competitive oligopoly tends to result in both rivals using a low-price strategy that does not maximize profits
- 7. the term that refers to the oligopoly condition in which an action by one firm may cause a reaction from other firms
- 8. a firm in monopolistic competition experiences a(n) ________ in its LRAC due to advertising
- 9. a group of firms that formally agree to reduce competition by coordinating the price and output
- 11. a firm in monopolistic competition uses ______ which increases its expenses
- 12. the model for explaining behavior by oligopoly firms in which a dominant firm sets the price for the industry
- 13. with product differentiation, the differences may be only ______ by buyers
Down
- 1. the demand curve for a monopolistically competitive firm is less ____ than for a firm in perfect competition
- 3. a term that refers to the oligopoly market structure that refers to its use of market power
- 4. the process of creating real or apparent differences between goods or services
- 5. a model of the strategic moves and countermoves of rivals that can be used to understand oligopolies
- 6. _______ competition uses advertising, packaging, etc. to compete
- 10. it is the increase in LRAC for a firm in perfect competition, rather than an increase in _________ as in perfect competition, that leads to zero economic profit