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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. An attempt by a firm to convince buyers that its product is different from the products of other firms in the industry






2. In game theory - a statement of harmful intent by one party that the other party views as believable-- "if you do this - we will do that"






3. Ignoring the effects of their actions on each others' profits






4. Rival who sets its output after the leader (Stackelberg's model)






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






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






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






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






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






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






11. Takes Place inside the Mind of the consumer






12. Involves price-fixing






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






14. 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






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






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






17. The percentage of the total industry sales accounted for by the four largest firms in the industry. OUTPUT of 4 largest firms over TOTAL output in industry. C4=(S1+...+S4)/St or (w1+...+w4)






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






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






20. A measure of the difference between price and marginal cost as a fraction of the product's price. L=(P-MC)/P - refactoring gives: P=MC(1/(1-L)) - which gives us the "1/(1-L)" markup factor






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






22. 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






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






24. Simultaneous move game that is not repeated






25. 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






26. 1/(1+i)n






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






28. 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






29. Demand line is above ATC curve






30. Pricing strategy in which identical products are packaged together in order to enhance profits by forcing customers to make an all-or-none decision to purchase






31. Price Sensitive






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






33. The price that is low enough to deter entry






34. 2 firms - simplest case in an oligopoly. Profits higher if limiting their production






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






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






37. Toothpaste - shampoo - restaurants - banks






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






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






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






41. When a manager makes a noncooperative decision






42. The derivative of total revenue






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






44. 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






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






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






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






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






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






50. Revenue-Costs