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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. All firms and individuals willing and able to buy or sell a particular product






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






3. Takes Place inside the Mind of the consumer






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






5. Rules - strategies - payoffs - outcomes






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






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






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






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






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






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






12. The derivative of total revenue






13. Pricing strategy in which a firm optimally sets the internal price at which an upstream division wells an input to a downstream division






14. Produce identical products






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






16. 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.)






17. Physical differences - Convenience - Ambience - Reputations - Appeals to vanity - Unconscious fears and desires - Snob appeal - Customized products






18. Demand line is above ATC curve






19. If buyers have enough bargaining power - they can insist on lower prices - higher-quality products - or additional services






20. 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






21. Simultaneous move game that is not repeated






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






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






24. 2 firms - simplest case in an oligopoly. Profits higher if limiting their production






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






26. The situation when a firm's long-run average costs fall as it increases output






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






28. 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






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






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






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






33. 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






34. 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"






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






36. Steel - autos - colas - airlines






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






38. Toothpaste - shampoo - restaurants - banks






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






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






41. 1/(1+i)n






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






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






44. 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






45. 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






46. 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






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






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






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






50. Intense competition in which competitors cut retail prices to gain business--oligopolistic competition