-3. Oligopoly and easy entry and exit. options shehe can choose in a setting where me outco depends not only on their own actions but also on the acti D. A market in which entry is easy and exit Sothers. Example: the games of Rock-Paper-Scissors or costless, new firms can produce the product at the Tic-Tac-Toe. 4. Concentration came cost as current firms , and exiting firms :4_An association of firms under oligopoly that act coopera easily dispose of their fixed assets by selling them. as if they are one giant company to influence output and Ratio E. A theory of market structure based on three If each firm in an oligopoly sells an undifferentiated produ assumptions : few sellers and many buyers, firms oil, demand curve that each firm faces will be horizontal -5. Cartel Theory producing either homogeneous or differentiated market price as in perfect competition instead of down products , and significant barriers to entry . sloping under monopol Example: O.P.E.C.(Organization o F. A monopolistic competitor in equilibrium producePetroleum Exporting Countriesby 15 member nations) 6. Cartel an output smaller than the one that would minimize The ratio of the combined market shares of a given numb its costs of production. firms to the total market size to determine the degree G. A mathematical technique used to analyze the saturation. behavior of decision makers who try to reach ah A market structure in which few firms dominate 7. Game Theory optimal position for themselves through game playing characterized by highly concentrated market. or the use of strategic behavior , who are fully awake Refers to a situation where a firm is forced to produce of the interactive nature of the process at hand and level of output below its capacity due to lack of deman who anticipate the moves of other decision makers. , intentionally limit output to boost price. 8. Contestable H. A theory of oligopoly in which oligopolistic firms market structure where there are fairly large number act as if there were only one firm in the industry . firms competing by producing differentiated products Market advertising is one of the characteristic features 3