Markets
This market relies on dominant strategy
oligopoly
(P-ATC)*Q
profit
pollution is an example of this
externality
These laws are targeted at monopolies and oligopolies to restrict market power
antitrust
this is sometimes used as a signal of quality...regardless of whether the product is high quality
advertising
In the long run, demand is tangent to the ATC for this market
monopolistic competition
in the long run, a competitive firm will exit if revenue is less than this.
total costs
the point of production at the minimum of the average total cost
efficient scale
If the government wants to encourage its citizens to get a new vaccine, they may consider offering this.
subsidy
A monopoly does not have this curve in its "market"
supply
If you are in this market and the price of a good is less than your average total costs, you should exit immediately
perfect competition
This type of profit does not take into account implicit costs
accounting
costs that have clear dollar amounts
explicit costs
leaving the government OUT of it, this is the idea that private parties can solve the externalities on their own
coase theorem
A bridge is an example of this.
natural monopoly
deadweight loss
This should NOT be considered when a business is deciding whether to stay in the market or exit
sunk cost
the additional output produced by an additional worker
Two antitrust laws are named after these people
Sherman and Clayton
amazon was founded in this year
1994
A monopoly is able to use THIS strategy if buyers can be segregated in different markets
price discrimination
the shutdown rule for a firm in a perfectly competitive market
when P<AVC
this occurs when a powerful firm prices its product so low that new entrants must leave the market
predatory pricing
this type of policy represents the government's attempt to remedy an externality by forbidding behavior
command and control
microsoft was founded by bill gates and this guy
Paul Allen