Across
- 4. an identifying symbol or name for a particular good and can only be used by the firm that registered that trademark
- 6. differentiation any action that firms do to make consumers think their products are different from their competitors'
- 7. profit profit of one more unit of output, computed as marginal revenue minus marginal cost
- 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
- 14. competition each firm faces many competitors that sell identical products
- 15. the long-run process of firms reducing production and shutting down in response to industry losses
- 18. equilibrium where all firms earn zero economic profits producing the output level where P = MR = MC and P = AC
- 20. competitive firms and organizations that fall between the extremes of monopoly and perfect competition
- 21. taker a firm in a perfectly competitive market that must take the prevailing market price as given
- 22. pricing when an existing firm uses sharp but temporary price cuts to discourage new competition
- 23. an oligopoly with only two firms
- 27. monopoly economic conditions in the industry, for example, economies of scale or control of a critical resource, that limit effective competition
- 28. a group of firms that collude to produce the monopoly output and sell at the monopoly price
- 30. competition many firms competing to sell similar but differentiated products
- 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
- 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. 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. 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. product a product that consumers perceive as distinctive in some way
- 5. removing government controls over setting prices and quantities in certain industries
- 8. when firms act together to reduce output and keep prices high
- 9. demand curve a perceived demand curve that arises when competing oligopoly firms commit to match price cuts, but not price increases
- 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
- 12. a government rule that gives the inventor the exclusive legal right to make, use, or sell the invention for a limited time
- 13. revenue the additional revenue gained from selling one more unit
- 16. dilemma a game in which the gains from cooperation are larger than the rewards from pursuing self-interest
- 17. the long-run process of firms entering an industry in response to industry profits
- 19. when a few large firms have all or most of the sales in an industry
- 24. monopoly legal prohibitions against competition, such as regulated monopolies and intellectual property protection
- 25. to entry the legal, technological, or market forces that may discourage or prevent potential competitors from entering a market
- 26. a situation in which one firm produces all of the output in a market
- 29. a form of legal protection to prevent copying, for commercial purposes, original works of authorship, including books and music
- 31. secrets methods of production kept secret by the producing firm