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 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


2. 1/(1+i)n






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






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






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






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






7. A simpler way to operationalize first-degree price discrimination






8. 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






9. 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.)






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






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






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






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






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






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






16. The price of a product that results in the most efficient allocation of an economy's resources and that is equal to the marginal cost of the product






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






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






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






20. 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






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






22. 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






23. Identical or substitutable






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






25. Ignoring the effects of their actions on each others' profits






26. 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






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






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






29. Takes Place inside the Mind of the consumer






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






31. A situation in which all decision makers know the payoff table - and they believe all other decision makers also know the payoff table






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






33. 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)






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






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






36. (1) Economies of Scale; (2) Economies of Scope; (3) Cost Complementarity; and (4)Patents & Other Legal Barriers






37. 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






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






39. Many buyers and sellers - product homogeneity - low cost and accurate information - free entry and exit - best regarded as a benchmark






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






41. The reward received by a player in a game - such as the profit earned by an oligopolist






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






43. The derivative of total revenue






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






45. In game theory - game where parties make their moves in turn - one party making the first move followed by the other






46. Both players have dominant strategies and play them






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






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






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






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