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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 - a statement of harmful intent easily dismissed by recipient because threat not considered believable






2. Takes Place inside the Mind of the consumer






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






4. 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






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






6. If production of a good requires a particular input - then control of that input can be a barrier to entry






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






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






9. 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






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






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






13. A merger between firms who have a buyer/supplier relationship. Example: BF Goodrich merging with rubber plantations






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






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






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






17. Simultaneous move game that is not repeated






18. 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)






19. First firm to set its output (Stackelberg's model)






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






21. 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






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






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






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






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






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






27. A measure of the sensitivity to price of a product group as a whole relative to the sensitivity of the quantity demanded of a single firm to a change in its price. R=Et/Ef






28. A merger between two firms in the same industry. Example: 2004 K-Mart merged with Sears






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






30. Variations on one good so that a firm can increase market sharea






31. The price that is low enough to deter entry






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






33. 1/(1+i)n






34. 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.)






35. 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






36. 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"






37. 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






38. Involves price-fixing






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






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






41. A situation in which no one wants to change his or her behavior






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






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






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






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






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






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






48. 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






49. Produce identical products






50. 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