a collusive group of firms in this industry is called this
What is a cartel?
100
Profits are maximized at this point
What is MC=MR @ the demand curve?
100
This type of efficiency/ies exist in only one market structure
What is allocative and productive efficiency? WHat is perfect competition
200
The place where losses are made for a mc firm
What is P< ATC?
200
Firms are able to enter this market structure easily because of
What is low barriers to entry?
200
Firms produce products in this firm that are
What is heterogenous and homogenous?
200
Legal monopolies/natural monoplies can exist when this occurs
What is economics of scale, decreasing LR ATC ?
200
When oligopolies compete when prices are lowered by one firm this causes this problem
What is a price war?
300
Firms can only make this type of profit in the short tun
What is super normal profit ( abnormal profit)
300
all firms are this because of they are only one firm amongst many firms and therefore demand and supply set the price
What is price taker?
300
There is no incentive to increase price in this market structure because of this
What is sticky price/wages upwards?
300
Monopolistic always produce in the elastic section of this demand curve because in the inelastic section of the demand this occurs
What is decreasing revenues?
300
Advertising is what distinguishes this market structure from a perfectly competitive firm
What is monopolistic competition?
400
Firms enter into the industry and these two curves shift in such a way that abnormal profit disappears
What is the Demand and MR curve, which both shift left and become more elastic?
400
This type of firm will leave the industry when
What is price is less than AVC?
400
The oligopolist faces a demand curve that has two elasticities, elastic at high prices and inelastic at low prices and it is called
What is a kinked demand curve?
400
AT MR=0 , what exits for a monopolist?
What is revenue maximization?
400
Monopolists can do this when they have control of the market, when they can divide the consumers into separate categories and their product can not be exchanged or resold
What is price discriminate?
500
Long Equilibrium profit maximization point is
What is MC=MR?
500
The single most important reason why there are few firms in this industry
What are large barriers to entry ?( brand loyalty, start up costs, advertising costs, legislation)
500
Monopolist have to do this in to increase production
What is decrease prices?
500
The perfectly competitive firm should stay open as long as