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






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






3. A measure of market power - the percentage of all sales that is accounted for by the four or eight largest firms in the market






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






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






6. Takes Place inside the Mind of the consumer






7. The physical characteristics of the market within which firms interact






8. 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






9. Both players have dominant strategies and play them






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






11. A situation in which all decision makers know the payoff table - and they believe all other decision makers also know the payoff table






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






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






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






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






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






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






18. 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






19. 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






20. A strategy whereby a player randomizes over two or more available actions in order to keep rivals from being able to predict his action






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






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






23. 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






24. When managers are able to charge each consumer their reservation price. Examples are car and home sales






25. 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






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






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






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






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






30. 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






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






32. Rival who sets its output after the leader (Stackelberg's model)






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






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






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






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






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






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






39. When each firm has an incentive to cheat - but both are worse off if both cheat -- illustrates why cooperation is difficult to maintain even when it is mutually beneficial to do so

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






41. The derivative of total revenue






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






43. Rules - strategies - payoffs - outcomes






44. 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






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






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






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






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






49. 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






50. Toothpaste - shampoo - restaurants - banks