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






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






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






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






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






6. 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






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






8. 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






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






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






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






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






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






14. Multiple firms produce similar products - Firms face downward sloping demand curves - Profit maximization occurs where MC=MR - With free entry and exit - firms compete away economic profits






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






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






17. Takes Place inside the Mind of the consumer






18. 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






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






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






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






22. If buyers have enough bargaining power - they can insist on lower prices - higher-quality products - or additional services






23. 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






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






25. A simpler way to operationalize first-degree price discrimination






26. Both players have dominant strategies and play them






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






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






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






30. 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"






31. 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






32. Produce identical products






33. 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)






34. Increases in the value of a product to each user - including existing users - as the total number of users rises






35. 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






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






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






38. Steel - autos - colas - airlines






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






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






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






42. 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






43. 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






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






45. 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






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






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






48. 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)






49. 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






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







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