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






2. 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






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






4. 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






5. The competition for sales between the products of one industry and the products of another industry






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






7. The price that is low enough to deter entry






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






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






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






12. Price Sensitive






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






14. 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"






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






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






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






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






19. 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






20. (1) Economies of Scale; (2) Economies of Scope; (3) Cost Complementarity; and (4)Patents & Other Legal Barriers






21. 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






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






23. The derivative of total revenue






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






25. Industry in which (1) there are few firms serving many customers; (2) firms produce either differentiated or homogenous products; (3) a single (leader) firm chooses an output quantity before their rivals select their outputs; (4) all other (follower)






26. Identical or substitutable






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






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






29. 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






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






31. 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






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






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






34. A table that shows the payoffs for every possible action by each player for every possible action by the other player






35. A merger of firms in unrelated industries. Example: If Purina Dow Chow merged with Pampers Diaper Company






36. 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






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






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






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






40. Involves price-fixing






41. Simultaneous move game that is not repeated






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






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






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






46. 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)






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






48. When a manager makes a noncooperative decision






49. 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






50. 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