AP Microeconomics: Unit 4 - Imperfect Competition Guide Flashcards

control of scarce resources, legal barriers, high startup costs

market structure where there is only one firm producing a product

has large fixed costs, and long economies of scale, has downward sloping ATC curve

occurs in specific industries as consumers pay a different price for the same good

charging consumers different prices based on the buyer’s willingness to pay

charges all consumers the maximum they are willing to pay, no deadweight loss, produce at P=MC

another term for imperfect competition, and occurs when many companies offer competing products which are similar but not perfect substitutes

all the actions that a firm takes will affect the other firms in the oligopoly

a group that agrees to control the price and output of a product (often form in oligopoly)

working together to maximize profit

represents the payoff to each player to show combinations of given strategies

the strategy that has a better payoff regardless of what strategy the opponent chooses

point where both players can do no better than the other given the choice of their opponent

MR=MC

ATC=D