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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 condition describing a set of strategies that constitutes a Nash equilibrium and allows no player to improve their own payoff at any stage of the game by changing strategies






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






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






4. A combination of two or more companies into one company






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






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






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






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






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






10. 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






11. Rules - strategies - payoffs - outcomes






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






13. A situation in which neither firm has incentive to change its output given the other firm's output






14. Price Sensitive






15. 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






16. Toothpaste - shampoo - restaurants - banks






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






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






19. 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






20. In game theory - game where parties make their moves in turn - one party making the first move followed by the other






21. When no one firm has a monopoly - but producers nonetheless realize that they can affect market prices. Firms compete but possess market power






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






23. 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






24. Cooperation among firms that does not involve an explicit agreement






25. If buyers have enough bargaining power - they can insist on lower prices - higher-quality products - or additional services






26. Involves price-fixing






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






28. Face competition from companies that currently are not in the market but might enter






29. A firm whose price decisions are tacitly accepted and followed by others in the industry






30. Occurs when a firm produces output - whatever its level - at a higher cost than is necessary to produce it






31. 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






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






33. Pricing strategy in which higher prices are charged during peak hours than during off-peak hours






34. 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






35. Produce differentiated products. Make a profit or take a lost in the short run - in the long run the firm will break even. (MOST number of firms.)






36. Simultaneous move game that is not repeated






37. The derivative of total revenue






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






39. Produce identical products






40. Steel - autos - colas - airlines






41. When a manager makes a noncooperative decision






42. Ranks industries according to how much social welfare would improve if the output in an industry were increased by a small amount






43. 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






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






45. Specific assets - Economies of scale - Excess capacity - Reputation effects






46. Identical or substitutable






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






48. Multiple firms produce similar products - Firms face downward sloping demand curves - Profit maximization occurs where MC=MR - With free entry and exit - firms compete away economic profits






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






50. Anything that keeps new firms from entering an industry in which firms are earning economic profits (e.g. Ownership of a Key Input - Capital - Patents - Economies of scale)