AP®︎ Microeconomics: Topic 4.5 Flashcards

A market with few interdependent firms, high entry barriers, and inefficient output.

An oligopoly with only two firms competing in the same market.

A condition where each firm's decisions depend on expected reactions from rival firms.

A situation where one firm sets price changes and rival firms tend to follow.

A situation where each player's payoff depends on both their own and others' choices.

A complete plan describing the action a player will take in every situation.

A table showing each player's strategies and the payoff from every strategy combination.

An action that gives a higher payoff no matter what the other player does.

An outcome where no player can gain by changing alone, given others' choices.

A game where each player chooses self-interest, producing a worse outcome than cooperation.

The result when firms act independently, often lowering price and reducing profits.

The minimum payoff increase needed to make another action yield a higher payoff.

An agreement among oligopolists to act like a monopoly by raising price and restricting output.

The result when players work together to maximize their combined payoffs.