SUBJECTS
|
BROWSE
|
CAREER CENTER
|
POPULAR
|
JOIN
|
LOGIN
Business Skills
|
Soft Skills
|
Basic Literacy
|
Certifications
About
|
Help
|
Privacy
|
Terms
|
Email
Search
Test your basic knowledge |
Business Competition
Start Test
Study First
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 product's ability to satisfy a large number of consumers at the same time
Homogenous oligopoly
Profit
Open Collusion
Simultaneous consumption
2. 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
Rothschild index
Stackelberg oligopoly
Herfindahl-Hirschman index (HHI)
Monopolistic Competition
3. Keeps the price just where it is to maximize profit
Indefinitely repeated game
Cutthroat Competition
Examples of Oligopoly
Empty threat
4. Revenue-Costs
Profit
Limit price
Perfect Competition Barriers to Entry
Mixed (randomized) strategy
5. Long-run marginal cost curve above long-run average cost
Perfect Competition Long Run Supply
Cheating
Minimum efficient scale (full capacity)
Monopolistic Competition
6. A table that shows the payoffs that each firm earns from every combination of strategies by the firms
Payoff matrix
Vertical Merger
Basis for Product Differentiation
Maximizing profit in Oligopoly games
7. When firms limit production and raise prices in a way that raises each others' profits - even though they have not made any formal agreement
Tacit collusion
High Price Elasticity
Socially optimal price
Perfect Competition Short Run Supply
8. A table that shows the payoffs for every possible action by each player for every possible action by the other player
Profit
Inefficiency
Monopolistic Competition
Payoff matrix
9. When no one firm has a monopoly - but producers nonetheless realize that they can affect market prices. Firms compete but possess market power
Product differentiation
Patent
Imperfect competition
Sequential game
10. Where a firm can charge different groups of consumers different prices for the same product. Example: student or senior discounts
Monopolistic Competition
Third-degree price discrimination
Product differentiation
Undifferentiated
11. The reward received by a player in a game - such as the profit earned by an oligopolist
Monopoly (characteristics)
Natural Monopoly (local phone or electric company)
Payoff
Product differentiation
12. 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
Market Structure
Third-Degree Price Discrimination
Payoff table
Primary Sources of Monopolistic Power
13. When something can be consumed without reducing the benefits available for subsequent consumption; can be consumed without supporting rivalry between consumers
Mutual Interdependence
Concentration Ratio
Non-rivalrous consumption
The Threat from Potential Entrants Firms
14. Price of a product that enables its producer to obtain a normal profit & that is equal to the ATC of producing it
Patent
Fair return price
Prisoner's dilemma
Third-degree price discrimination
15. The exclusive right to a product for a period of 20 years from the date the product is invented
Common knowledge
Patent
Monopoly (characteristics)
Cross-subsidy pricing
16. Rival who sets its output after the leader (Stackelberg's model)
Trigger strategy
Follower
Business strategy
Inter-industry competition
17. The price that is low enough to deter entry
Limit price
Herfindahl-Hirschman index (HHI)
Nash equilibrium
Cooperation
18. 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
Interdependence
Dominant firm oligopoly
Repeated game
One-shot game
19. 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
Cournot oligopoly
Dominant firm oligopoly
Price war
Payoff
20. A strategy or action that always provides the best outcome no matter what decisions rivals make
Dominant strategy
One-shot game
Duopoly
Price war
21. A situation in which competing firms must make their individual decisions without knowing the decisions of their rivals
Simultaneous decision games
Oligopoly
Extensive-form game
Leader
22. When the decisions of two or more firms significantly affect each others' profits
Interdependence
Credible threat
Kinked demand curve model
Cutthroat Competition
23. Marginal cost curve above average variable cost - P* = SRMC
Perfect Competition Short Run Supply
High Price Elasticity
Non-rivalrous consumption
Kinked-demand curve
24. 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
Dansby-Willig performance index
Contestable market
Ownership of a Key Input
Non-price competition
25. In game theory - a statement of harmful intent easily dismissed by recipient because threat not considered believable
Economies of scale
Empty threat
Four-firm concentration ratio
Perfect Competitor Characteristics
26. Price Sensitive
Limit pricing
Mutual interdependence
High Price Elasticity
Limit price
27. If buyers have enough bargaining power - they can insist on lower prices - higher-quality products - or additional services
Perfect Competition Barriers to Entry
Perfect Competitor Characteristics
Indefinitely repeated game
Bargaining Power of Buyers
28. Pricing strategy in which higher prices are charged during peak hours than during off-peak hours
Peak-load pricing
Follower
Natural Monopoly (local phone or electric company)
Nonprime competition
29. A simpler way to operationalize first-degree price discrimination
Credible threat
Merger
Trigger strategy
Two-part Tariff Method of Pricing
30. An industry where (1) there are few firms serving many customers; (2) firms produce differentiated products; (3) each firm believes rivals will respond to price reductions but will not follow price increases; and (4) barriers to entry exist
Market
Inter-industry competition
Cournot equilibrium
Sweezy oligopoly
31. Intense competition in which competitors cut retail prices to gain business--oligopolistic competition
Joint Venture
Patent
Price war
Examples of Oligopoly
32. 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)
No cooperative equilibrium
Unbalanced Oligopoly
Tacit collusion
Four-firm concentration ratio
33. A merger of firms in unrelated industries. Example: If Purina Dow Chow merged with Pampers Diaper Company
Perfect Competitor Characteristics
Conglomerate Merger
Four-firm concentration ratio
Second-Degree Price Discrimination
34. Multiple firms make the same pricing decisions even though they have not explicitly consulted with each other
Block pricing
Minimum efficient scale (full capacity)
Pure monopoly
Implicit Collusion
35. Each firm believes that if it raises its price - its competitors will not follow - but if it lowers its price all of its competitors will follow; -a model in which firms in an oligopoly match price cuts by other firms - but do not match price hike
Dominant strategy
Vertical Merger
Kinked demand curve model
First-Degree Price Discrimination (Perfect)
36. Takes Place inside the Mind of the consumer
Product Differentiation
Covert Collusion
Cutthroat Competition
Rothschild index
37. The smallest quantity at which the average cost curve reaches its minimum
Vertical Merger
Minimum efficient scale (full capacity)
Perfect Competition Long Run Supply
Maximizing profit in Oligopoly games
38. 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
Strategic behavior
Perfect Competition (characteristics)
Bargaining Power of Suppliers
Two-part Tariff Method of Pricing
39. Both players have dominant strategies and play them
Natural Monopoly (local phone or electric company)
Perfect Competition Barriers to Entry
Dominant strategy equilibrium
Cournot equilibrium
40. Pricing strategy in which a firm optimally sets the internal price at which an upstream division wells an input to a downstream division
Disappearing invisible hand
Transfer pricing
Competitive market
Perfect Competition Barriers to Entry
41. Increases in the value of a product to each user - including existing users - as the total number of users rises
Oligopoly
Covert Collusion
Network effects
Strategy
42. Simultaneous move game that is not repeated
Transfer pricing
Sequential game
Bertrand oligopoly
One-shot game
43. 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
Joint Venture
Cooperation
Sweezy oligopoly
Cournot oligopoly
44. Actions taken by firms to plan for and react to competition from rival firms
Randomized pricing
Strategic behavior
High Price Elasticity
Cournot oligopoly
45. Variations on one good so that a firm can increase market sharea
Differentiated oligopoly
Brand Multiplication
Patent
Interdependence
46. 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
Price war
Kinked-demand curve
Price discrimination
Nash equilibrium
47. 2 firms - simplest case in an oligopoly. Profits higher if limiting their production
Dominant firm oligopoly
First-mover advantage
Duopoly
Peak-load pricing
48. A measure of market power - the percentage of all sales that is accounted for by the four or eight largest firms in the market
Sweezy oligopoly
Patent
Rothschild index
Concentration Ratio
49. The demand curve for a non-collusive oligopolist - which is based on the assumption that rivals will match a price decrease and will ignore a price increase
Kinked-demand curve
Simultaneous decision games
Commodity bundling
Tit-for-tat strategy
50. An agreement among firms in a market about quantities to produce or prices to charge in attempts to limit competition
Imperfect competition
Two-part Tariff Method of Pricing
Marginal Revenue
Collusion
Sorry!:) No result found.
Can you answer 50 questions in 15 minutes?
Let me suggest you:
Browse all subjects
Browse all tests
Most popular tests
Major Subjects
Tests & Exams
AP
CLEP
DSST
GRE
SAT
GMAT
Certifications
CISSP go to https://www.isc2.org/
PMP
ITIL
RHCE
MCTS
More...
IT Skills
Android Programming
Data Modeling
Objective C Programming
Basic Python Programming
Adobe Illustrator
More...
Business Skills
Advertising Techniques
Business Accounting Basics
Business Strategy
Human Resource Management
Marketing Basics
More...
Soft Skills
Body Language
People Skills
Public Speaking
Persuasion
Job Hunting And Resumes
More...
Vocabulary
GRE Vocab
SAT Vocab
TOEFL Essential Vocab
Basic English Words For All
Global Words You Should Know
Business English
More...
Languages
AP German Vocab
AP Latin Vocab
SAT Subject Test: French
Italian Survival
Norwegian Survival
More...
Engineering
Audio Engineering
Computer Science Engineering
Aerospace Engineering
Chemical Engineering
Structural Engineering
More...
Health Sciences
Basic Nursing Skills
Health Science Language Fundamentals
Veterinary Technology Medical Language
Cardiology
Clinical Surgery
More...
English
Grammar Fundamentals
Literary And Rhetorical Vocab
Elements Of Style Vocab
Introduction To English Major
Complete Advanced Sentences
Literature
Homonyms
More...
Math
Algebra Formulas
Basic Arithmetic: Measurements
Metric Conversions
Geometric Properties
Important Math Facts
Number Sense Vocab
Business Math
More...
Other Major Subjects
Science
Economics
History
Law
Performing-arts
Cooking
Logic & Reasoning
Trivia
Browse all subjects
Browse all tests
Most popular tests