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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. Physical differences - Convenience - Ambience - Reputations - Appeals to vanity - Unconscious fears and desires - Snob appeal - Customized products






2. 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






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






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






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






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






7. Set marginal cost for the cartel equal to marginal revenue for the cartel; -cartel's marginal cost curve is the horizontal sum of the MC curves of the two firms; -Marginal revenue curve is like that of a monopoly






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






9. Pricing strategy in which higher prices are charged during peak hours than during off-peak hours






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






11. 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






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






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






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






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






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






17. 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






18. 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






19. Involves price-fixing






20. 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






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






22. A situation in which neither firm has incentive to change its output given the other firm's output






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






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






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






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






27. Actions taken by firms to plan for and react to competition from rival firms






28. Toothpaste - shampoo - restaurants - banks






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






30. Different units of a product are sold at different prices. Examples are buying in bulk - or - commodity-bundling






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






32. A representation of a game that summarizes the players - the information available to them at each stage - the strategies available to them - the sequence of moves - and the payoffs resulting from alternative strategies






33. Specific assets - Economies of scale - Excess capacity - Reputation effects






34. The price that is low enough to deter entry






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






36. A trigger strategy that punishes after an episode of cheating and returns to cooperation if cheating ends






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






38. First firm to set its output (Stackelberg's model)






39. Produce identical products






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






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






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






44. 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






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






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






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






48. 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






49. 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






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