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Flashcards in Oligopoly Deck (11):

Define collusion.

Collusion is any action undertaken by rival or separate companies to restrict competition between them with a view to increasing TP.


Define price rigidity.

Price rigidity is a term used to describe a situation. In which prices do not change, even when there is a change in costs.


Define constant prices.

Price constancy means a firm maintains the same selling price, even if there is a small change in costs.


Define price competition.

Price competition is where firms compete by changing prices.


Define non-price competition.

Non-price competition is any action undertaken to increase sales at the expense of other firms, other than lowering prices.


Define persuasive advertising.

Persuasive advertising is used to persuade people that they can't live without a product.


Define competitive advertising.

Competitive asserting is used to convince customers that one product is better than another.


Define informative advertising.

Informative advertising gives factual information about a product.


Define homogeneous oligopoly.

Homogeneous oligopoly is where a few firms sell identical products and firms are extremely interdependent.


Define duopoly.

Duopoly is a market structure where there are only 2 suppliers of a good.


Define differentiated oligopoly.

Differentiated oligopoly is where the few dominant firms sell similar products that aren't exactly identical, but are very close substitutes.