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Business Competition

Subject : business-skills
Instructions:
  • Answer 50 questions in 15 minutes.
  • If you are not ready to take this test, you can study here.
  • Match each statement with the correct term.
  • Don't refresh. All questions and answers are randomly picked and ordered every time you load a test.

This is a study tool. The 3 wrong answers for each question are randomly chosen from answers to other questions. So, you might find at times the answers obvious, but you will see it re-enforces your understanding as you take the test each time.
1. When the decisions of two or more firms significantly affect each others' profits






2. The price of a product that results in the most efficient allocation of an economy's resources and that is equal to the marginal cost of the product






3. A situation in which a change in price strategy by one firm affects sales and profits of another






4. A trigger strategy that punishes after an episode of cheating and returns to cooperation if cheating ends






5. Pricing strategy in which a firm intentionally varies its price in an attempt to "hide" price information from consumers and rivals






6. Intense competition in which competitors cut retail prices to gain business--oligopolistic competition






7. Revenue-Costs






8. Simultaneous move game that is not repeated






9. Long-run marginal cost curve above long-run average cost






10. A strategy or action that always provides the best outcome no matter what decisions rivals make






11. In game theory - a decision rule that describes the actions a player will take at each decision point






12. In game theory - a statement of harmful intent easily dismissed by recipient because threat not considered believable






13. When firms make decisions that make every firm better off than in a noncooperative Nash equilibrium






14. An oligopoly in which the sales of the leading (top four) firms are distributed unevenly among them






15. Game in which each player makes decisions without knowledge of the other player's decisions






16. A situation where one firm is able to provide a service at a lower cost than could several competing firms






17. 2 firms - simplest case in an oligopoly. Profits higher if limiting their production






18. Keeps the price just where it is to maximize profit






19. An agreement among firms in a market about quantities to produce or prices to charge in attempts to limit competition






20. Produce identical products






21. An oligopoly in which the firms produce a standardized product






22. Different units of a product are sold at different prices. Examples are buying in bulk - or - commodity-bundling






23. A table showing - for every possible combination of decisions players can make - the outcomes or "payoffs" for each of the players in each decision combination






24. Price of a product that enables its producer to obtain a normal profit & that is equal to the ATC of producing it






25. The maximum price that a buyer is willing to pay for a good - or the minimum price that a seller will accept






26. An oligopoly in which the firms produce a differentiated product






27. In game theory - a game that is played again sometime after the previous game ends






28. 1/(1+i)n






29. The situation that exists when two or more groups need each other and must depend on each other to accomplish a goal that is important to each of them






30. All firms and individuals willing and able to buy or sell a particular product






31. Takes Place inside the Mind of the consumer






32. A market in which: (1) all have access to the same technology; (2) consumers respond quickly to price changes; (3) existing firms cannot respond quickly to entry by lowering their prices; and (4) there are no sunk costs






33. An equilibrium in a game in which players do not cooperate but pursue their own self-interest






34. Pricing strategy in which consumers are charged a fixed fee for the right to purchase a product - plus a per-unit charge for each unit purchased






35. Many buyers and sellers - product homogeneity - low cost and accurate information - free entry and exit - best regarded as a benchmark






36. Nash equilibrium - the result when each player in a game chooses the action that maximizes his or her payoff given the actions of other players - ignoring the effects of his or her action on the payoffs received by those players (when you confess w






37. Each seller can sell all he wants to sell at the going price - Buyers and sellers are price takers - The goods offered by the different sellers are largely the same - The actions of any single buyer or seller will have a negligible impact on the m






38. The actions by persons - firms - or unions to gain special benefits from government at taxpayer's or someone else's expense






39. Using advertising and other means to try to increase a firm's sales






40. One large firm that has a significant cost advantage over many other - smaller competing firms; -the large firm operates as a monopoly: setting price and output to maximize profit; -the small firms act as perfect competitors: taking as given the mar






41. Involves price-fixing






42. If production of a good requires a particular input - then control of that input can be a barrier to entry






43. Single seller in an industry - Strong barriers to entry - Profit maximization - faces market demand and sets MR=MC - Unexploited gains from trade






44. If many firms can supply an input and the input is not specialized - the suppliers are unlikely to have the bargaining power to limit a firm's profits






45. Physical differences - Convenience - Ambience - Reputations - Appeals to vanity - Unconscious fears and desires - Snob appeal - Customized products






46. The competition for sales between the products of one industry and the products of another industry






47. Competition based on factors that are not related to price - such as product quality - service and financing - business location - and reputation






48. A pricing strategy in which profits gained from the sale of one product are used to subsidize sales of a related product






49. A merger of firms in unrelated industries. Example: If Purina Dow Chow merged with Pampers Diaper Company






50. Pricing strategy in which identical products are packaged together in order to enhance profits by forcing customers to make an all-or-none decision to purchase