ECO 211 HA10

ECO 211 HA10 - practitioners and protect U.S firms from international competition 2.1 a Game Theory – The study of how people make decisions

Info iconThis preview shows pages 1–2. Sign up to view the full content.

View Full Document Right Arrow Icon
Microeconomics 211 Chapter 10 : Oligopoly : Firms HA 10 ( #1.1, 1.2, 1.3, 2.1) 1.1) An oligopoly is a market structure where a small number of interdependent firms compete. Three examples of oligopolies in the United States are industries that produce or sell automobiles, athletic footwear, and cigarettes. 1.2) Without barriers to entry, new firms will enter industries where firms are earning economic profits. The most important barriers to entry are economies of scale, ownership of a key input, and government imposed barriers. 1.3) An example of a government imposed barrier to entry is tariffs on imports and occupational licensing. The government would be willing to impose barriers to encourage firms to carry out research and development of new and better products, to protect the public from incompetent
Background image of page 1

Info iconThis preview has intentionally blurred sections. Sign up to view the full version.

View Full DocumentRight Arrow Icon
Background image of page 2
This is the end of the preview. Sign up to access the rest of the document.

Unformatted text preview: practitioners, and protect U.S. firms from international competition. 2.1) a) Game Theory – The study of how people make decisions where attaining goals depends on interactions with others. b) Cooperative equilibrium – A game outcome in which players seek to increase their mutual payoff. c) Noncooperative equilibrium – A game outcome in which players pursue their own self-interest. d) Dominant strategy – A strategy that is the best for a firm no matter what strategies other firms use. e) Nash equilibrium – A situation in which each firm chooses the best strategy, given the strategies chosen by other firms....
View Full Document

This note was uploaded on 01/14/2012 for the course ECO 211 taught by Professor Morvey during the Fall '10 term at Piedmont TC.

Page1 / 2

ECO 211 HA10 - practitioners and protect U.S firms from international competition 2.1 a Game Theory – The study of how people make decisions

This preview shows document pages 1 - 2. Sign up to view the full document.

View Full Document Right Arrow Icon
Ask a homework question - tutors are online