Chapter 9

3. The demand for a firm's product in oligopoly depends critically on how rivals respond to the firm's _ decisions.
5. Duopoly model that assumes one firm is the leader while the other is a follower.
7. under this, duopolists produce a total output that corresponds to the monopoly output.
9. fromthe viewpoint of the manager, this oligopoly is undesirable because it leads to zero economic profit even if there are only two firms in the market.
11. Who must consider his or her own decisions on other firms in the industry in determining what price to charge?
12. What will be the result to the demand curve if the rivals will not match the price change?
13. Oligopoly model where the manager competing in it believes that the other firms will match any price decrease but not match price increases.
14. An oligopoly composed of only two firms is called?
15. Cournot _ is the situtation where neither firm has an incentive to change its output given the output of the other firm.
16. Cournot Duopoly: Each firm must make an output decision, and each firm believes as it changes its own output that its rival will hold output _.
19. Cournot model applies to situations in which the products are either _ or differentiated

1. a function that defines the profit-maximizing level of output for a firm for given output levels of another firm.
2. Curve used to summarize the profit of a firm in Cournot oligopoly?
4. Given knowledge of the leader's output, all other firms take as given the leader's output and choose outputs that maximize profits. They are called as?
6. Oligopoly model relevant for decision making when managers make output decisions and believe that their decisions do not affect the output decisions of rival firms.
8. This one firm is assumed to make an output decision before the other firms. This one firm is called as?
10. Loss where price exceeds marginal cost and output is below the socially efficient level.
17. A _ cost defined as costs a new entrant must bear that cannot be recouped upon exiting the market.
18. Refers to a situation where there are relatively few large firms in an industry.
19. What will be the result to the demand curve if the rivals will match the price change?