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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. A representation of a game that summarizes the players - the information available to them at each stage - the strategies available to them - the sequence of moves - and the payoffs resulting from alternative strategies






2. Sets the price at the highest level that is consistent with keeping the potential entrant out. -The strategy of reducing the price to deter entry






3. When an upstream divisions leverages "monopoly like" power to charge higher marginal cost to a downstream division - resulting in failure of the firm to optimize profits based on the wrong quantity decision at the firms level






4. Revenue-Costs






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






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






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






8. A table that shows the payoffs for every possible action by each player for every possible action by the other player






9. (1) Economies of Scale; (2) Economies of Scope; (3) Cost Complementarity; and (4)Patents & Other Legal Barriers






10. The situation when a firm's long-run average costs fall as it increases output






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






12. Where a firm can charge different groups of consumers different prices for the same product. Example: student or senior discounts






13. Industry in which (1) few firms serving many customers; (2) firms produce identical products t constant marginal cost; (3) firms compete in price and react optimally to competitor's prices; (4) consumers have perfect information and here are no trans






14. First firm to set its output (Stackelberg's model)






15. The practice of bundling several different products together and selling them at a single "bundle" price






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






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






18. Industry where (1) there are few firms serving many customers; (2) firms produce either differentiated or homogenous products; (3) each form believes rivals will hold their output constant if it changes its output; and (4) barriers to entry exist. Fi






19. Toothpaste - shampoo - restaurants - banks






20. A game that is played over and over again forever and in which players receive payoffs during each play of the game






21. Actions taken by a firm to achieve a goal - such as maximizing profits






22. Takes Place inside the Mind of the consumer






23. Ignoring the effects of their actions on each others' profits






24. The practice of charging different prices to consumers for the same good or service






25. The rules describe the setting of the game - the actions the players may take - and the consequences of those actions; -Advertising and R&D are also prisoners' dilemmas

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26. Actions taken by firms to plan for and react to competition from rival firms






27. Set marginal cost for the cartel equal to marginal revenue for the cartel; -cartel's marginal cost curve is the horizontal sum of the MC curves of the two firms; -Marginal revenue curve is like that of a monopoly






28. 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






29. A measure of the sensitivity to price of a product group as a whole relative to the sensitivity of the quantity demanded of a single firm to a change in its price. R=Et/Ef






30. Sellers can identify different types of customers and offer each a different price. Examples are special prices for students or the elderly






31. Operates like the alleged Mafia. Region division of the market among the firms in the industry






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






33. The competition that domestic firms encounter from the products and services of foreign producers






34. A representation of a game indicating the players - their possible strategies - and the payoffs resulting from alternative strategies






35. 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






36. 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






37. A strategy that is contingent on the past play of a game and ion which some particular past action "triggers" a different action by a player






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






39. Identical or substitutable






40. A few firms produce most market output - Products may or may not be differentiated - Effective entry barriers protect firm profitability - Firm interdependence requires strategic thinking






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






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






43. Game in which one player makes a move after observing the other player's move






44. 1/(1+i)n






45. A strategy in which a firm advertises a price and a promise to match any lower prices offered by a competitor






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






47. Produce identical products






48. Pricing strategy in which a firm optimally sets the internal price at which an upstream division wells an input to a downstream division






49. In game theory - benefit obtained by party that moves first in a sequential game






50. Multiple firms make the same pricing decisions even though they have not explicitly consulted with each other