Chapter 27 - Oligopoly and Strategic Behavior

entry

When there is no threat of ________, Mona uses the marginal principle to pick a quantity and a price.

Game theory

________** is the study of decision- making in strategic situations.

Concentration ratios

________** are the percentage of the market output produced by the largest firms.

game tree

A** ________** is a graphical representation of the consequences of different actions in a strategic setting.

duopolists' dilemma

The ________ occurs because the two firms are unable to coordinate their pricing decisions and act as one.

payoff matrix

A** ________** is a matrix or table that shows, for the possible outcomes of a game, the consequences for each player.

small increase

The advertisers dilemma occurs when advertising causes a relatively ________ in the total sales of the industry but allows a firm that advertises gain at the expense of firms that dont.

dominant strategy

A** ________** is an action that is best chosen for a player, no matter what the other player does.

total profit

The increase in revenue is less than the cost of advertising, so advertising decreases ________.