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






2. 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






3. Takes Place inside the Mind of the consumer






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






5. The derivative of total revenue






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






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






8. Steel - autos - colas - airlines






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






10. 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






11. 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






12. 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






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






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






15. Where a firm can charge different groups of consumers different prices for the same product. Example: student or senior discounts






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






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






18. 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






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






20. Identical or substitutable






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






22. 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






23. 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






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






25. 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"






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






27. 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






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






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






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






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






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






33. Revenue-Costs






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






35. 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






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






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






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






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






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






41. 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






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






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






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






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






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






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






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






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






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