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ECO202 Test 2 Review Spring 2016

Horizontales
a perceived demand curve that arises when competing oligopoly firms commit to match price cuts, but not price increases
aformoflegalprotectiontopreventcopying,forcommercialpurposes,originalworksofauthorship,including books and music
a branch of mathematics often used by economists that analyzes situations in which players must make decisions and then receive payoffs based on what decisions the other players make
a product that is perceived by consumers as distinctive in some way
when firms act together to reduce output and keep prices high
when a few large firms have all or most of the sales in an industry
many firms competing to sell similar but differentiated products
legalprohibitionsagainstcompetition,suchasregulatedmonopoliesandintellectualpropertyprotection
the body of law including patents, trademarks, copyrights, and trade secret law that protect the right of inventors to produce and sell their inventions
economicconditionsintheindustry,forexample,economiesofscaleorcontrolofacriticalresource, that limit effective competition
a game in which the gains from cooperation are larger than the rewards from pursuing self-interest
a firm in a perfectly competitive market that must take the prevailing market price as given
Verticales
firms and organizations that fall between the extremes of monopoly and perfect competition
a government rule that gives the inventor the exclusive legal right to make, use, or sell the invention for a limited time
the additional revenue gained from selling one more unit
a group of firms that collude to produce the monopoly output and sell at the monopoly price
the legal, technological, or market forces that may discourage or prevent potential competitors from entering a market
a situation in which one firm produces all of the output in a market
an identifying symbol or name for a particular good and can only be used by the firm that registered that trademark