Key terms – matching and translation.

Read aloud the key term and its definition so that they make up a single sentence. (Remember about the agreement between the subject and the predicate!). Translate the sentences you have arrived at from English into Russian.

Set I

	Kinked demand curves	aConsequence of kinked demand curves.
	Oligopoly	b Conspiratorial price and output setting; usually illegal.
	Monopolistic competition	cA market with only a few, large, interdependent firms.
	Product differentiation	d Example of a successful cartel.
	Cartels	e Attempts to joint-profit maximize.
	Incentives to cheat	f Why cartels tend to be unstable.
	Collusion	g Raise prices, competitors do nothing; lower prices, competitors follow.
	OPEC	h Exists when firms consider their rivals' reactions when making business decisions.
	Mutual interdependence	i Many firms, heterogeneous products.
	Sticky prices	j Attempts to increase demand and make it less price elastic.

Set II

	games theory	a Entails refusal to commit to a position until the other player commits to a position.
	dominant strategy	b Occurs when firms that possess a relatively large degree of monopoly power set a profitable price that is low enough to discourage new entrants into the market.
	Nash equilibrium	c A player's best response to any strategy that other players might pick.
	grim strategy	d A strategy that begins cooperatively. Thereafter, in any period, this strategy entails echoing what the opponent did in the previous period.
	tit for tat	e Use of an irreversible capital outlay to signal potential rivals to stay away.
	contestable market theory	f A strategy combination where no player has a net incentive to change unless other players change.
	predatory behavior	g A study of strategic interactions among interdependent decision makers’ products.
	limit pricing	hOccurs when a firm attempts to drive rivals from the industry and deter entry. After rivals exit, the remaining firm presumably will raise its prices to levels consistent with its market power.
	sunk cost	i Suggests that easy market entry can force even firms that are the sole current sellers of goods to produce the same output levels and set the same prices as would firms in perfect competition.
	accommodation	j Firms do not fight or attempt to prohibit the entry of new firms in the market; it depends on the estimated payoff of non-opposition.

Дата добавления: 2015-07-10