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. The price that is low enough to deter entry
One-shot game
Randomized pricing
Limit price
No cooperative equilibrium
2. 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)
Repeated game
Two-part Tariff Method of Pricing
Four-firm concentration ratio
Non-cooperative behavior
3. 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
Mutual Interdependence
Cournot oligopoly
Maximizing profit in Oligopoly games
Dominant strategy equilibrium
4. Cooperation among firms that does not involve an explicit agreement
Imperfect competition
Perfect Competitor Characteristics
Tacit collusion
Price Leadership
5. 2 firms - simplest case in an oligopoly. Profits higher if limiting their production
Sweezy oligopoly
Duopoly
Herfindahl-Hirschman index (HHI)
Mutual interdependence
6. A firm whose price decisions are tacitly accepted and followed by others in the industry
Price Leadership
Reservation Price
Kinked-demand curve
Minimum efficient scale (full capacity)
7. Intense competition in which competitors cut retail prices to gain business--oligopolistic competition
Price war
Mixed (randomized) strategy
Sequential game
Rent-seeking behavior
8. A trigger strategy that punishes after an episode of cheating and returns to cooperation if cheating ends
Limit price
Tit-for-tat strategy
Simultaneous consumption
Kinked demand curve model
9. A simpler way to operationalize first-degree price discrimination
Inter-industry competition
Imperfect competition
Barrier to entry
Two-part Tariff Method of Pricing
10. The competition for sales between the products of one industry and the products of another industry
Cournot oligopoly
Concentration Ratio
Trigger strategy
Inter-industry competition
11. A pricing strategy in which profits gained from the sale of one product are used to subsidize sales of a related product
Perfect Competition Long Run Supply
Credible threat
Product Differentiation
Cross-subsidy pricing
12. The price of a product that results in the most efficient allocation of an economy's resources and that is equal to the marginal cost of the product
Lerner index
Socially optimal price
Herfindahl-Hirschman index (HHI)
Duopoly
13. A situation in which no one wants to change his or her behavior
Payoff table
Equilibrium
Two-part pricing
Homogenous oligopoly
14. In game theory - game where parties make their moves in turn - one party making the first move followed by the other
Brand Multiplication
Socially optimal price
Sequential game
Common knowledge
15. 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
Two-part pricing
Block pricing
Prisoners' dilemma
Patent
16. 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
Open Collusion
Mutual Interdependence
Normal-form game
17. Pricing strategy in which a firm optimally sets the internal price at which an upstream division wells an input to a downstream division
Transfer pricing
Sweezy oligopoly
Strategy
Third-Degree Price Discrimination
18. A table that shows the payoffs that each firm earns from every combination of strategies by the firms
Perfect Competition Long Run Supply
Cooperation
Payoff matrix
Vertical Merger
19. An equilibrium in a game in which players cooperate to increase their mutual payoff
Follower
Cooperative equilibrium
Product differentiation
Import competition
20. Ignoring the effects of their actions on each others' profits
Block pricing
Tacit collusion
Present Value (PV)
Non-cooperative behavior
21. Game in which one player makes a move after observing the other player's move
Sequential-move game
Bertrand oligopoly
Tacit collusion
Mixed (randomized) strategy
22. A strategy whereby a player randomizes over two or more available actions in order to keep rivals from being able to predict his action
Mixed (randomized) strategy
Simultaneous-move game
Two-part pricing
Conglomerate Merger
23. The situation when a firm's long-run average costs fall as it increases output
Economies of scale
No cooperative equilibrium
Prisoners' dilemma
Open Collusion
24. A measure of market power - the percentage of all sales that is accounted for by the four or eight largest firms in the market
Competitive market
Concentration Ratio
Limit pricing
Block pricing
25. Involves price-fixing
Simultaneous consumption
Collusion
Present Value (PV)
Covert Collusion
26. A situation in which neither firm has incentive to change its output given the other firm's output
Mutual Interdependence
Cutthroat Competition
Sequential game
Cournot equilibrium
27. 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
Homogenous oligopoly
Patent
Business strategy
Competitive market
28. A situation where one firm is able to provide a service at a lower cost than could several competing firms
Natural Monopoly (local phone or electric company)
Payoff table
Extensive-form game
Block pricing
29. A merger between firms who have a buyer/supplier relationship. Example: BF Goodrich merging with rubber plantations
Price matching
Vertical Merger
Competitive market
Kinked demand curve model
30. 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
Extensive-form game
Limit pricing
Limit price
Merger
31. An oligopoly in which the firms produce a standardized product
Covert Collusion
Homogenous oligopoly
Block pricing
Randomized pricing
32. A merger of firms in unrelated industries. Example: If Purina Dow Chow merged with Pampers Diaper Company
Third-Degree Price Discrimination
Competitive market
Conglomerate Merger
Nonprime competition
33. When an upstream divisions leverages "monopoly like" power to charge higher marginal cost to a downstream division - resulting in failure of the firm to optimize profits based on the wrong quantity decision at the firms level
Homogenous oligopoly
Maximizing profit in Oligopoly games
Double marginalization
Profit
34. The reward received by a player in a game - such as the profit earned by an oligopolist
Payoff
Present Value (PV)
Reservation Price
Economies of scale
35. The actions by persons - firms - or unions to gain special benefits from government at taxpayer's or someone else's expense
Business strategy
Merger
Economies of scale
Rent-seeking behavior
36. Maximize economic profit by producing the quantity at which MC=MR
Maximizing profit in Oligopoly games
Examples of Monopolistic Competition
Marginal Revenue
Simultaneous-move game
37. 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
Perfect Competition Barriers to Entry
Sweezy oligopoly
Extensive-form game
Patent
38. A merger between two firms in the same industry. Example: 2004 K-Mart merged with Sears
Payoff
Price discrimination
Horizontal Merger/Integration
Perfect Competition (characteristics)
39. Marginal cost curve above average variable cost - P* = SRMC
Cournot equilibrium
Bargaining Power of Buyers
Perfect Competition Short Run Supply
Patent
40. Keeps the price just where it is to maximize profit
Merger
Cutthroat Competition
Nonprime competition
Implicit Collusion
41. All firms and individuals willing and able to buy or sell a particular product
Cutthroat Competition
Trigger strategy
Market
Follower
42. 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
Secure strategy
Sequential game
Stackelberg oligopoly
Bertrand oligopoly
43. Increases in the value of a product to each user - including existing users - as the total number of users rises
Sweezy oligopoly
Non-cooperative equilibrium
Network effects
Duopoly
44. Occurs when a firm produces output - whatever its level - at a higher cost than is necessary to produce it
Prisoners' dilemma
Inefficiency
Competitive market
Dominant strategy equilibrium
45. Different units of a product are sold at different prices. Examples are buying in bulk - or - commodity-bundling
Dansby-Willig performance index
Second-Degree Price Discrimination
Strategic behavior
Socially optimal price
46. Price Sensitive
Kinked-demand curve
Price matching
Monopoly (characteristics)
High Price Elasticity
47. 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"
Extensive-form game
Barrier to entry
Credible threat
Rent-seeking behavior
48. (1) Economies of Scale; (2) Economies of Scope; (3) Cost Complementarity; and (4)Patents & Other Legal Barriers
Primary Sources of Monopolistic Power
Four-firm concentration ratio
What is game?
Tit-for-tat strategy
49. 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
Contestable market
Joint Venture
Perfect Competition Barriers to Entry
Cournot oligopoly
50. Single firm is sole producer of a product for which there are no close substitutes
Cutthroat Competition
Interdependence
Secure strategy
Pure monopoly