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






2. 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






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






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






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






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






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






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






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






10. Simultaneous move game that is not repeated






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






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






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






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






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






16. 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






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






18. 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)






19. Identical or substitutable






20. Takes Place inside the Mind of the consumer






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






22. Revenue-Costs






23. A condition describing a set of strategies in which no player can improve their payoff by unilaterally changing their own strategy given the other player's strategy






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






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






26. When firms limit production and raise prices in a way that raises each others' profits - even though they have not made any formal agreement






27. Industry where (1) there are few firms serving many customers; (2) firms produce either differentiated or homogenous products; (3) each form believes rivals will hold their output constant if it changes its output; and (4) barriers to entry exist. Fi






28. Produce identical products






29. 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






30. Demand line is above ATC curve






31. Price Sensitive






32. 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






33. Rules - strategies - payoffs - outcomes






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






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






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






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






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






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






40. 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






41. A situation in which competing firms must make their individual decisions without knowing the decisions of their rivals






42. Both players have dominant strategies and play them






43. A table that shows the payoffs for every possible action by each player for every possible action by the other player






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






45. 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






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






47. 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






48. 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






49. 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






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