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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. All firms and individuals willing and able to buy or sell a particular product






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






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






4. 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






5. 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.)






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






7. 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






8. 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






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






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






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






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






13. Identical or substitutable






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






15. 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






16. Pricing strategy in which consumers are charged a fixed fee for the right to purchase a product - plus a per-unit charge for each unit purchased






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






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






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






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






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






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






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






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






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






26. 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






27. Rules - strategies - payoffs - outcomes






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






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






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






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






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






33. 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






34. Demand line is above ATC curve






35. Steel - autos - colas - airlines






36. 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






37. When managers are able to charge each consumer their reservation price. Examples are car and home sales






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






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






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






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






42. 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






43. 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






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






45. 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

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






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






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






49. Ranks industries according to how much social welfare would improve if the output in an industry were increased by a small amount






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







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Can you answer 50 questions in 15 minutes?


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