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Flashcards in Oligopoly Deck (11):
1

Define collusion.

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

2

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.

3

Define constant prices.

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

4

Define price competition.

Price competition is where firms compete by changing prices.

5

Define non-price competition.

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

6

Define persuasive advertising.

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

7

Define competitive advertising.

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

8

Define informative advertising.

Informative advertising gives factual information about a product.

9

Define homogeneous oligopoly.

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

10

Define duopoly.

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

11

Define differentiated oligopoly.

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