Test your basic knowledge |

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. 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






2. Toothpaste - shampoo - restaurants - banks






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






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






5. Identical or substitutable






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






7. Rules - strategies - payoffs - outcomes






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






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






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






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






12. 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






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






14. 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






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






16. 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






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






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






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






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






21. Anything that keeps new firms from entering an industry in which firms are earning economic profits (e.g. Ownership of a Key Input - Capital - Patents - Economies of scale)






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






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






24. The maximum price that a buyer is willing to pay for a good - or the minimum price that a seller will accept






25. An oligopoly in which the sales of the leading (top four) firms are distributed unevenly among them






26. Takes Place inside the Mind of the consumer






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






28. Rival who sets its output after the leader (Stackelberg's model)






29. The rules describe the setting of the game - the actions the players may take - and the consequences of those actions; -Advertising and R&D are also prisoners' dilemmas

Warning: Invalid argument supplied for foreach() in /var/www/html/basicversity.com/show_quiz.php on line 183


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






31. Industry in which (1) there are few firms serving many customers; (2) firms produce either differentiated or homogenous products; (3) a single (leader) firm chooses an output quantity before their rivals select their outputs; (4) all other (follower)






32. 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






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






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






35. Pricing strategy in which higher prices are charged during peak hours than during off-peak hours






36. 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






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






38. Sets the price at the highest level that is consistent with keeping the potential entrant out. -The strategy of reducing the price to deter entry






39. Simultaneous move game that is not repeated






40. Multiple firms produce similar products - Firms face downward sloping demand curves - Profit maximization occurs where MC=MR - With free entry and exit - firms compete away economic profits






41. 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






42. The derivative of total revenue






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






44. The physical characteristics of the market within which firms interact






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






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






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






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






49. A strategy that guarantees the highest payoff given the worst possible scenario






50. Price Sensitive