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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. 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






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






3. A merger between firms who have a buyer/supplier relationship. Example: BF Goodrich merging with rubber plantations






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






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






6. An oligopoly in which the firms produce a differentiated product






7. Occurs when a firm produces output - whatever its level - at a higher cost than is necessary to produce it






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






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






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






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






12. A market in which: (1) all have access to the same technology; (2) consumers respond quickly to price changes; (3) existing firms cannot respond quickly to entry by lowering their prices; and (4) there are no sunk costs






13. Intense competition in which competitors cut retail prices to gain business--oligopolistic competition






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






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






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






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






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






19. Single seller in an industry - Strong barriers to entry - Profit maximization - faces market demand and sets MR=MC - Unexploited gains from trade






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






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






22. Involves price-fixing






23. 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






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






25. 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)






26. A measure of market power - the percentage of all sales that is accounted for by the four or eight largest firms in the market






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






28. Produce identical products






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






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






31. A table that shows the payoffs that each firm earns from every combination of strategies by the firms






32. 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






33. Demand line is above ATC curve






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






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






36. Rules - strategies - payoffs - outcomes






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






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






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






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






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






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






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






44. 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






45. A strategy in which a firm advertises a price and a promise to match any lower prices offered by a competitor






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






47. Price Sensitive






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






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






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







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