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






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






3. 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)






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






5. Rules - strategies - payoffs - outcomes






6. Revenue-Costs






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






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






9. 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






10. 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






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






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






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






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






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






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






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






18. 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.)






19. If many firms can supply an input and the input is not specialized - the suppliers are unlikely to have the bargaining power to limit a firm's profits






20. The players end up worse off than they would if they were able to cooperate; -the pursuit of self-interest does not promote the social interest in these games






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






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






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






24. 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






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






26. Maximize economic profit by producing the quantity at which MC=MR






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






28. 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






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






30. 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






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






32. Produce identical products






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






34. An equilibrium in a game in which players cooperate to increase their mutual payoff






35. 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






36. 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






37. Set marginal cost for the cartel equal to marginal revenue for the cartel; -cartel's marginal cost curve is the horizontal sum of the MC curves of the two firms; -Marginal revenue curve is like that of a monopoly






38. Toothpaste - shampoo - restaurants - banks






39. Cooperation among firms that does not involve an explicit agreement






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






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






42. Game in which one player makes a move after observing the other player's move






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






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






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






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






47. 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

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


48. Simultaneous move game that is not repeated






49. When a manager makes a noncooperative decision






50. Involves price-fixing