________ feature a large number of competing firms, but the products that they sell are not identical.

A group of firms that have a formal agreement to collude to produce the monopoly output and sell at the monopoly price is called a _________.

When firms act together in this way to reduce output and keep prices high, it is called _________.

____________ wrote in Wealth of Nations in 1776: “People of the same trade seldom meet together, even for merriment and diversion, but the conversation ends in a conspiracy against the public, or in some contrivance to raise prices.”

a branch of mathematics that analyzes situations in which players must make decisions and then receive payoffs based on what other players decide to do.

a pressure that a firm can exert on which competing oligopoly firms commit to match price cuts, but not price increases.

___________which measures the combined market share (or percent of total industry sales) which is accounted for by the largest firms (typically the top four to eight).

________ calculates by summing the squares of the market share of each firm in the industry.

________ practices that do not involve outright agreements to raise price or to reduce the quantity produced, but that might have the effect of reducing competition.

calculates the average cost of production for the water or electricity companies, added in an amount for the normal rate of profit the firm should expect to earn, and set the price for consumers accordingly.

________ where the regulator sets a price that the firm can charge over the next few years.

calculates the average cost of production for the water or electricity companies, added in an amount for the normal rate of profit the firm should expect to earn, and set the price for consumers accordingly.

________ removing government controls over prices and quantities produced in airlines, railroads, trucking, intercity bus travel, natural gas, and bank interest rates.

__________ firms that are supposedly regulated end up playing a large role in setting the regulations that they will follow.

to increase confidence in financial information provided by public corporations to protect investors from accounting fraud.

__________outlawed mergers and acquisitions (where the outcome would be to “substantially lessen competition” in an industry), price discrimination (where different customers are charged different prices for the same product), and tied sales (where purchase of one product commits the buyer to purchase some other product).

________ extended the Clayton Act by restricting vertical and conglomerate mergers. A vertical merger occurs when two or more firms, operating at different levels within an industry's supply chain, merge operations.

The effect of a market exchange on a third party who is outside or “external” to the exchange.

_______ is a tax imposed on the quantity of pollution that a firm emits.

________ the legal rights of ownership on which others are not allowed to infringe without paying compensation.

________ won the 1991 Nobel Prize in economics, offered a vivid illustration of an externality: a railroad track running beside a farmer’s field where the railroad locomotive sometimes emits sparks and sets the field ablaze.

who published The Economics of Imperfect Competition and became interested in macroeconomics and she became a prominent Keynesian, and later a post-Keynesian economist.

one of the developers of imperfect competition and published The Economics of Monopolistic Competition.