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






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






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






4. The smallest quantity at which the average cost curve reaches its minimum






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






6. 1/(1+i)n






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






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






9. Takes Place inside the Mind of the consumer






10. Price Sensitive






11. In game theory - a statement of harmful intent by one party that the other party views as believable-- "if you do this - we will do that"






12. 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






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






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






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. 2 firms - simplest case in an oligopoly. Profits higher if limiting their production






17. Industry in which (1) there are few firms serving many customers; (2) firms produce either differentiated or homogenous products; (3) a single (leader) firm chooses an output quantity before their rivals select their outputs; (4) all other (follower)






18. Involves price-fixing






19. 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






20. Demand line is above ATC curve






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






22. The price that is low enough to deter entry






23. 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






24. 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






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






26. 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






27. An equilibrium in a game in which players do not cooperate but pursue their own self-interest






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






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






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






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






32. The reward received by a player in a game - such as the profit earned by an oligopolist






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






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






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






36. Simultaneous move game that is not repeated






37. 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






38. Single firm is sole producer of a product for which there are no close substitutes






39. Rules - strategies - payoffs - outcomes






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






41. 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






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






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






44. 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






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






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






47. An oligopoly in which the sales of the leading (top four) firms are distributed unevenly among them






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






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






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