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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. Sellers can identify different types of customers and offer each a different price. Examples are special prices for students or the elderly






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






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






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






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






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






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






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






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






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






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






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






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






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






15. The physical characteristics of the market within which firms interact






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






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






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






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






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






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






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






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






24. 2 firms - simplest case in an oligopoly. Profits higher if limiting their production






25. Takes Place inside the Mind of the consumer






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)






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






28. The smallest quantity at which the average cost curve reaches its minimum






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






30. Identical or substitutable






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






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






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






34. An oligopoly in which the firms produce a standardized product






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






36. A product's ability to satisfy a large number of consumers at the same time






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






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






39. The derivative of total revenue






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






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






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






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






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






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






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






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

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48. Both players have dominant strategies and play them






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






50. When the decisions of two or more firms significantly affect each others' profits