SUBJECTS
|
BROWSE
|
CAREER CENTER
|
POPULAR
|
JOIN
|
LOGIN
Business Skills
|
Soft Skills
|
Basic Literacy
|
Certifications
About
|
Help
|
Privacy
|
Terms
|
Email
Search
Test your basic knowledge |
Business Competition
Start Test
Study First
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. Sellers can identify different types of customers and offer each a different price. Examples are special prices for students or the elderly
Perfect Competitor Characteristics
Third-Degree Price Discrimination
Business strategy
Simultaneous decision games
2. 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
Secure strategy
Kinked-demand curve
Open Collusion
Third-degree price discrimination
3. A firm whose price decisions are tacitly accepted and followed by others in the industry
Fair return price
Nash equilibrium
Price Leadership
Perfect Competitor Characteristics
4. Ranks industries according to how much social welfare would improve if the output in an industry were increased by a small amount
Strategy
Concentration Ratio
Dansby-Willig performance index
Covert Collusion
5. 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
Network effects
Perfect Competition Barriers to Entry
Oligopoly
Two-part Tariff Method of Pricing
6. Cooperation among firms that does not involve an explicit agreement
Tacit collusion
Minimum efficient scale (full capacity)
Interdependence
Product Differentiation
7. A game that is played over and over again forever and in which players receive payoffs during each play of the game
Indefinitely repeated game
Sequential-move game
Two-part Tariff Method of Pricing
Third-degree price discrimination
8. Actions taken by firms to plan for and react to competition from rival firms
Unbalanced Oligopoly
Strategic behavior
Primary Sources of Monopolistic Power
Implicit Collusion
9. When something can be consumed without reducing the benefits available for subsequent consumption; can be consumed without supporting rivalry between consumers
Price Leadership
Cooperation
Non-rivalrous consumption
Tacit collusion
10. A strategy whereby a player randomizes over two or more available actions in order to keep rivals from being able to predict his action
Mixed (randomized) strategy
What is game?
Cooperative equilibrium
Follower
11. Specific assets - Economies of scale - Excess capacity - Reputation effects
Perfect Competition Short Run Supply
Perfect Competition Barriers to Entry
Mutual interdependence
Natural Monopoly (local phone or electric company)
12. A situation in which competing firms must make their individual decisions without knowing the decisions of their rivals
Perfect Competition Short Run Supply
Block pricing
Simultaneous decision games
Implicit Collusion
13. Game in which one player makes a move after observing the other player's move
The Threat from Potential Entrants Firms
Present Value (PV)
Sequential-move game
Nonprime competition
14. 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
Ownership of a Key Input
Non-cooperative equilibrium
Simultaneous consumption
Credible threat
15. The physical characteristics of the market within which firms interact
Market Structure
First-mover advantage
Differentiated oligopoly
Covert Collusion
16. First firm to set its output (Stackelberg's model)
Brand Multiplication
Leader
Implicit Collusion
Cooperation
17. An equilibrium in a game in which players cooperate to increase their mutual payoff
Cooperative equilibrium
Vertical Merger
Contestable market
Two-part pricing
18. Keeps the price just where it is to maximize profit
Rothschild index
Simultaneous decision games
Cutthroat Competition
Credible threat
19. A trigger strategy that punishes after an episode of cheating and returns to cooperation if cheating ends
Cross-subsidy pricing
Strategic behavior
Kinked-demand curve
Tit-for-tat strategy
20. 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
Payoff table
Horizontal Merger/Integration
Price Leadership
Perfect Competitor Characteristics
21. 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
Bertrand oligopoly
Natural Monopoly (local phone or electric company)
Trigger strategy
Open Collusion
22. A strategy or action that always provides the best outcome no matter what decisions rivals make
Dominant strategy
Cutthroat Competition
Payoff matrix
Natural Monopoly (local phone or electric company)
23. Pricing strategy in which a firm intentionally varies its price in an attempt to "hide" price information from consumers and rivals
Contestable market
Bertrand oligopoly
Randomized pricing
Normal-form game
24. 2 firms - simplest case in an oligopoly. Profits higher if limiting their production
Dominant strategy
Duopoly
Rent-seeking behavior
Joint Venture
25. Takes Place inside the Mind of the consumer
Payoff matrix
Product Differentiation
Socially optimal price
Concentration Ratio
26. 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)
Barrier to entry
Product Differentiation
Credible threat
Rent-seeking behavior
27. An equilibrium in a game in which players do not cooperate but pursue their own self-interest
Dominant strategy equilibrium
Payoff
Interdependence
No cooperative equilibrium
28. The smallest quantity at which the average cost curve reaches its minimum
Minimum efficient scale (full capacity)
Cournot oligopoly
Finding profit for oligopoly games
Profit
29. 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
Joint Venture
Interdependence
Two-part pricing
Strategic behavior
30. Identical or substitutable
Simultaneous-move game
Undifferentiated
Maximizing profit in Oligopoly games
Kinked demand curve model
31. A representation of a game indicating the players - their possible strategies - and the payoffs resulting from alternative strategies
Joint Venture
Simultaneous-move game
Normal-form game
Limit price
32. All firms and individuals willing and able to buy or sell a particular product
Rent-seeking behavior
Bargaining Power of Suppliers
Merger
Market
33. A situation in which no one wants to change his or her behavior
Minimum efficient scale (full capacity)
Equilibrium
Payoff
Sweezy oligopoly
34. An oligopoly in which the firms produce a standardized product
Homogenous oligopoly
Joint Venture
Lerner index
Present Value (PV)
35. In game theory - a game that is played again sometime after the previous game ends
Kinked demand curve model
Repeated game
Concentration Ratio
Finding profit for oligopoly games
36. A product's ability to satisfy a large number of consumers at the same time
Simultaneous consumption
Limit pricing
Minimum efficient scale (full capacity)
Conglomerate Merger
37. A strategy that guarantees the highest payoff given the worst possible scenario
Secure strategy
Payoff matrix
Normal-form game
Sequential-move game
38. 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
Cross-subsidy pricing
Kinked demand curve model
Perfect Competitor Characteristics
Perfect Competition (characteristics)
39. The derivative of total revenue
Marginal Revenue
Third-Degree Price Discrimination
Simultaneous consumption
Sequential-move game
40. Multiple firms make the same pricing decisions even though they have not explicitly consulted with each other
Fair return price
Implicit Collusion
Price matching
Tit-for-tat strategy
41. Different units of a product are sold at different prices. Examples are buying in bulk - or - commodity-bundling
Examples of Oligopoly
Second-Degree Price Discrimination
Randomized pricing
Limit pricing
42. Variations on one good so that a firm can increase market sharea
Empty threat
Non-cooperative behavior
Brand Multiplication
Prisoners' dilemma
43. A condition describing a set of strategies that constitutes a Nash equilibrium and allows no player to improve their own payoff at any stage of the game by changing strategies
Business strategy
Subgame perfect equilibrium
Kinked demand curve model
Differentiated oligopoly
44. When firms limit production and raise prices in a way that raises each others' profits - even though they have not made any formal agreement
Randomized pricing
Tacit collusion
Nash equilibrium
Finding profit for oligopoly games
45. When managers are able to charge each consumer their reservation price. Examples are car and home sales
Third-degree price discrimination
Tacit collusion
First-Degree Price Discrimination (Perfect)
Payoff matrix
46. In game theory - game where parties make their moves in turn - one party making the first move followed by the other
Rothschild index
Sequential game
Undifferentiated
Block pricing
47. 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
48. Both players have dominant strategies and play them
Dominant strategy equilibrium
Horizontal Merger/Integration
Pure monopoly
Oligopoly
49. The situation when a firm's long-run average costs fall as it increases output
Economies of scale
Trigger strategy
High Price Elasticity
Marginal Revenue
50. When the decisions of two or more firms significantly affect each others' profits
Interdependence
Price Leadership
Homogenous oligopoly
Tacit collusion