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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 few firms produce most market output - Products may or may not be differentiated - Effective entry barriers protect firm profitability - Firm interdependence requires strategic thinking






2. 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






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






4. 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






5. 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.)






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






7. In game theory - a statement of harmful intent easily dismissed by recipient because threat not considered believable






8. 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






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






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






11. Sellers can identify different types of customers and offer each a different price. Examples are special prices for students or the elderly






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






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






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






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






16. An oligopoly in which the firms produce a differentiated product






17. 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






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






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. 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






21. Marginal cost curve above average variable cost - P* = SRMC






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






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






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






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






26. Produce identical products






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






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






29. Operates like the alleged Mafia. Region division of the market among the firms in the industry






30. An equilibrium in a game in which players cooperate to increase their mutual payoff






31. 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






32. 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






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






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






35. A merger of firms in unrelated industries. Example: If Purina Dow Chow merged with Pampers Diaper Company






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






37. When the decisions of two or more firms significantly affect each others' profits






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






39. Steel - autos - colas - airlines






40. An attempt by a firm to convince buyers that its product is different from the products of other firms in the industry






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






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






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






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






46. A table that shows the payoffs that each firm earns from every combination of strategies by the firms






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






48. An establishment firm commits to setting price below the profit-maximizing level to prevent entry






49. 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






50. An index of market concentration. Sum of squared market shares of all the firms in the industry times 10K HHI=10 - 000Σwi2






Can you answer 50 questions in 15 minutes?



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