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






2. The price that is low enough to deter entry






3. 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






4. When a manager makes a noncooperative decision






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






6. 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






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






8. An equilibrium in a game in which players do not cooperate but pursue their own self-interest






9. 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






10. The practice of charging different prices to consumers for the same good or service






11. Keeps the price just where it is to maximize profit






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






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






14. 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






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






16. Involves price-fixing






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






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






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






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






21. 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






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






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






24. 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






25. 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






26. 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






27. 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)






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






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






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






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






32. Maximize economic profit by producing the quantity at which MC=MR






33. 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






34. 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.)






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






36. 2 firms - simplest case in an oligopoly. Profits higher if limiting their production






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






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






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






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






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






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






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






44. In game theory - a statement of harmful intent easily dismissed by recipient because threat not considered believable






45. A strategy that guarantees the highest payoff given the worst possible scenario






46. If production of a good requires a particular input - then control of that input can be a barrier to entry






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






48. 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






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






50. The practice of bundling several different products together and selling them at a single "bundle" price