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






2. 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






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






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






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






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






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






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






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






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






11. 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






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






13. 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






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






15. 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






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






17. Simultaneous move game that is not repeated






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






19. 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






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






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






22. Both players have dominant strategies and play them






23. 1/(1+i)n






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






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






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






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






28. 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






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






30. 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.)






31. 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






32. 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






33. Different units of a product are sold at different prices. Examples are buying in bulk - or - commodity-bundling






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






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






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






38. 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






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






40. In game theory - a decision rule that describes the actions a player will take at each decision point






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






43. Increases in the value of a product to each user - including existing users - as the total number of users rises






44. A condition describing a set of strategies that constitutes a Nash equilibrium and allows no player to improve their own payoff at any stage of the game by changing strategies






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






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






47. 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






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






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






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