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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 - a statement of harmful intent easily dismissed by recipient because threat not considered believable






2. 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






3. 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






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






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






6. 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






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






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






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






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






11. When no one firm has a monopoly - but producers nonetheless realize that they can affect market prices. Firms compete but possess market power






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






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






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






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






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






17. The price that is low enough to deter entry






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






19. Single firm is sole producer of a product for which there are no close substitutes






20. 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






21. 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






22. 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






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






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






25. 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






26. 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






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






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






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






30. Takes Place inside the Mind of the consumer






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






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






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






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






35. Rules - strategies - payoffs - outcomes






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






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






38. 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






39. Toothpaste - shampoo - restaurants - banks






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






41. 1/(1+i)n






42. 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)






43. Multiple firms make the same pricing decisions even though they have not explicitly consulted with each other






44. 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






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






46. Steel - autos - colas - airlines






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






48. 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






49. The derivative of total revenue






50. An index of market concentration. Sum of squared market shares of all the firms in the industry times 10K HHI=10 - 000Σwi2