Unit 3 Crossword

5. ____ is the only buyer in a market.
11. A firm experiences ____ when long-run average costs fall as output rises.
14. Prisoners’s ____ is a game where, given that neither player knows the strategy of the other player, the optimum strategy for each player leads to a worse situation than if they had known the strategy of the other player and been able to co-operate and co-ordinate their strategies.
16. ____ costs are costs that vary directly with output.
17. ____ point is where AVC=AR in the short run。
18. ____ maximization occurs at MR=MC and generates super-normal profits.

1. ____ exists when two large firms dominate the market.
2. ____ is money earned by a firm for selling its output.
3. ____ pricing occurs when an incumbent firm sets a price so low that they earn normal profit (or low super-normal profit) to make rivals make a loss (because they are not as efficient).
4. ____ goods are perfect substitutes.
6. ____ efficiency occurs when a firm is on the minimum point of its AC curve.
7. An incumbent firm may use ____ pricing to price below their own AC curve so that both they and rivals make a loss.
8. ____ integration is a merger between two firms in the same industry at different stages of production.
9. Regulators may set a ____ to industries to limit each year’s price increase to only RPI-x.
10. ____ collusion is a formal agreement (written or verbal) amongst firms to control the market。
12. ____ is the act of satisfying or sufficing different stakeholders.
13. ____ occurs when large firms in an oligopoly form a cartel to act as a monopoly to restrict output and raise prices.
15. ____ costs are costs that cannot be recovered upon exiting a market.