match price cuts, but not price increases

monopolistic competition many firms competing to sell similar but differentiated products

oligopoly when a few large firms have all or most of the sales in an industry

prisoner’s dilemma a game in which the gains from cooperation are larger than the rewards from pursuing

self-interest

product differentiation any action that firms do to make consumers think their products are different from

their competitors'

Key Concepts and Summary

10.1 Monopolistic Competition

Monopolistic competition refers to a market where many firms sell differentiated products. Differentiated

products can arise from characteristics of the good or service, location from which the firm sells the product,

intangible aspects of the product, and perceptions of the product.

The perceived demand curve for a monopolistically competitive firm is downward-sloping, which shows that it
{"uploaded_via": "batch_uploader", "creator": "PDFMiner", "source_file": "downloads\\business\\economics\\Microeconomics3e.pdf", "file_name": "Microeconomics3e.pdf", "creationdate": "2022-12-07T14:15:44-06:00", "upload_timestamp": "2026-02-07T15:24:38.309401", "batch_upload": true, "file_type": ".pdf", "source": "downloads\\business\\economics\\Microeconomics3e.pdf", "file_size_mb": 26.99, "title": "Principles of Microeconomics 3e", "total_pages": 597, "file_hash": "830b81f41611ac67a490444dbb5d6aed292224606965b06965b914443c93331a", "producer": "Prince 14.2 (www.princexml.com)", "moddate": "2022-12-07T14:23:05-06:00"}