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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. An oligopoly in which the firms produce a differentiated product






2. 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






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






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






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






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






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






8. A business arrangement in which two or more firms undertake a specific economic activity together. Once the activity is over - the firms go their own way






9. A situation in which no one wants to change his or her behavior






10. Demand line is above ATC curve






11. Price Sensitive






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






13. The percentage of the total industry sales accounted for by the four largest firms in the industry. OUTPUT of 4 largest firms over TOTAL output in industry. C4=(S1+...+S4)/St or (w1+...+w4)






14. A simpler way to operationalize first-degree price discrimination






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






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






17. Increases in the value of a product to each user - including existing users - as the total number of users rises






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






19. When something can be consumed without reducing the benefits available for subsequent consumption; can be consumed without supporting rivalry between consumers






20. Produce identical products






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






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






23. Steel - autos - colas - airlines






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






25. 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






26. A product's ability to satisfy a large number of consumers at the same time






27. A situation in which competing firms must make their individual decisions without knowing the decisions of their rivals






28. 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






29. 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






30. 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






31. 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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32. When firms limit production and raise prices in a way that raises each others' profits - even though they have not made any formal agreement






33. 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






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






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






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






37. 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






38. The players end up worse off than they would if they were able to cooperate; -the pursuit of self-interest does not promote the social interest in these games






39. Variations on one good so that a firm can increase market sharea






40. Maximize economic profit by producing the quantity at which MC=MR






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






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






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






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






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






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






47. A merger between firms who have a buyer/supplier relationship. Example: BF Goodrich merging with rubber plantations






48. 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






49. A condition describing a set of strategies in which no player can improve their payoff by unilaterally changing their own strategy given the other player's strategy






50. The exclusive right to a product for a period of 20 years from the date the product is invented