SUBJECTS
|
BROWSE
|
CAREER CENTER
|
POPULAR
|
JOIN
|
LOGIN
Business Skills
|
Soft Skills
|
Basic Literacy
|
Certifications
About
|
Help
|
Privacy
|
Terms
|
Email
Search
Test your basic knowledge |
Business Competition
Start Test
Study First
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 situation in which competing firms must make their individual decisions without knowing the decisions of their rivals
Herfindahl-Hirschman index (HHI)
Duopoly
Non-cooperative behavior
Simultaneous decision games
2. Intense competition in which competitors cut retail prices to gain business--oligopolistic competition
Price war
Sequential game
Third-degree price discrimination
Subgame perfect equilibrium
3. A representation of a game indicating the players - their possible strategies - and the payoffs resulting from alternative strategies
Dansby-Willig performance index
Sweezy oligopoly
Payoff table
Normal-form game
4. Involves price-fixing
No cooperative equilibrium
First-Degree Price Discrimination (Perfect)
Covert Collusion
Ownership of a Key Input
5. In game theory - game where parties make their moves in turn - one party making the first move followed by the other
Block pricing
Sequential game
Third-degree price discrimination
Fair return price
6. A situation in which neither firm has incentive to change its output given the other firm's output
Competitive market
Cournot equilibrium
Sweezy oligopoly
Joint Venture
7. All firms and individuals willing and able to buy or sell a particular product
Simultaneous-move game
Market
Cutthroat Competition
Dansby-Willig performance index
8. 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
Contestable market
Kinked demand curve model
Follower
Strategic behavior
9. An establishment firm commits to setting price below the profit-maximizing level to prevent entry
Dominant firm oligopoly
Market Structure
Perfect Competitor Characteristics
Limit pricing
10. When firms make decisions that make every firm better off than in a noncooperative Nash equilibrium
Economies of scale
Cooperation
Patent
Market Structure
11. Simultaneous move game that is not repeated
One-shot game
Unbalanced Oligopoly
Limit pricing
Product differentiation
12. Keeps the price just where it is to maximize profit
Primary Sources of Monopolistic Power
Non-rivalrous consumption
Cutthroat Competition
Monopoly (characteristics)
13. A merger between two firms in the same industry. Example: 2004 K-Mart merged with Sears
Examples of Oligopoly
Open Collusion
Horizontal Merger/Integration
Cutthroat Competition
14. A situation in which no one wants to change his or her behavior
Joint Venture
Strategy
Equilibrium
Common knowledge
15. Produce differentiated products. Make a profit or take a lost in the short run - in the long run the firm will break even. (MOST number of firms.)
Trigger strategy
Monopolistic Characteristics:
Unbalanced Oligopoly
Limit pricing
16. Game in which each player makes decisions without knowledge of the other player's decisions
Dansby-Willig performance index
Cournot oligopoly
Simultaneous-move game
Non-cooperative behavior
17. Takes Place inside the Mind of the consumer
Price Leadership
Rent-seeking behavior
Perfect Competition Long Run Supply
Product Differentiation
18. A merger between firms who have a buyer/supplier relationship. Example: BF Goodrich merging with rubber plantations
Indefinitely repeated game
Price war
Vertical Merger
Two-part Tariff Method of Pricing
19. Face competition from companies that currently are not in the market but might enter
Cooperative equilibrium
The Threat from Potential Entrants Firms
Lerner index
Dominant strategy equilibrium
20. An equilibrium in a game in which players do not cooperate but pursue their own self-interest
Prisoner's dilemma
Concentration Ratio
No cooperative equilibrium
Tit-for-tat strategy
21. Many buyers and sellers - product homogeneity - low cost and accurate information - free entry and exit - best regarded as a benchmark
Perfect Competition Long Run Supply
Cooperative equilibrium
Block pricing
Perfect Competition (characteristics)
22. 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)
Secure strategy
One-shot game
Competitive market
Barrier to entry
23. Pricing strategy in which a firm intentionally varies its price in an attempt to "hide" price information from consumers and rivals
Differentiated oligopoly
Concentration Ratio
Randomized pricing
Simultaneous-move game
24. 2 firms - simplest case in an oligopoly. Profits higher if limiting their production
Marginal Revenue
Duopoly
Reservation Price
Credible threat
25. 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
Business strategy
Four-firm concentration ratio
Joint Venture
Duopoly
26. The physical characteristics of the market within which firms interact
Market
Second-Degree Price Discrimination
Market Structure
Monopolistic Characteristics:
27. A simpler way to operationalize first-degree price discrimination
Strategic behavior
Contestable market
Two-part Tariff Method of Pricing
Monopoly (characteristics)
28. A combination of two or more companies into one company
Unbalanced Oligopoly
Merger
Normal-form game
Repeated game
29. Sellers can identify different types of customers and offer each a different price. Examples are special prices for students or the elderly
Natural Monopoly (local phone or electric company)
Cutthroat Competition
Cross-subsidy pricing
Third-Degree Price Discrimination
30. The situation when a firm's long-run average costs fall as it increases output
Cross-subsidy pricing
Inefficiency
Economies of scale
Cournot equilibrium
31. When an upstream divisions leverages "monopoly like" power to charge higher marginal cost to a downstream division - resulting in failure of the firm to optimize profits based on the wrong quantity decision at the firms level
Prisoners' dilemma
High Price Elasticity
Mutual interdependence
Double marginalization
32. An oligopoly in which the sales of the leading (top four) firms are distributed unevenly among them
Finding profit for oligopoly games
Unbalanced Oligopoly
Limit pricing
Secure strategy
33. Actions taken by a firm to achieve a goal - such as maximizing profits
Perfect Competition Short Run Supply
Lerner index
Rothschild index
Business strategy
34. Physical differences - Convenience - Ambience - Reputations - Appeals to vanity - Unconscious fears and desires - Snob appeal - Customized products
Strategy
Perfect Competition Long Run Supply
Basis for Product Differentiation
Mixed (randomized) strategy
35. The rules describe the setting of the game - the actions the players may take - and the consequences of those actions; -Advertising and R&D are also prisoners' dilemmas
Warning
: Invalid argument supplied for foreach() in
/var/www/html/basicversity.com/show_quiz.php
on line
183
36. 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
Conglomerate Merger
Two-part pricing
Reservation Price
Inter-industry competition
37. 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
Non-price competition
Cournot oligopoly
Block pricing
Herfindahl-Hirschman index (HHI)
38. A measure of market power - the percentage of all sales that is accounted for by the four or eight largest firms in the market
Concentration Ratio
Non-rivalrous consumption
Payoff table
Cutthroat Competition
39. An industry where (1) there are few firms serving many customers; (2) firms produce differentiated products; (3) each firm believes rivals will respond to price reductions but will not follow price increases; and (4) barriers to entry exist
Rothschild index
Limit pricing
Joint Venture
Sweezy oligopoly
40. A trigger strategy that punishes after an episode of cheating and returns to cooperation if cheating ends
Kinked-demand curve
Monopolistic Competition
Extensive-form game
Tit-for-tat strategy
41. When each firm has an incentive to cheat - but both are worse off if both cheat -- illustrates why cooperation is difficult to maintain even when it is mutually beneficial to do so
Warning
: Invalid argument supplied for foreach() in
/var/www/html/basicversity.com/show_quiz.php
on line
183
42. 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
Perfect Competition Long Run Supply
Bargaining Power of Suppliers
Payoff table
Trigger strategy
43. Cooperation among firms that does not involve an explicit agreement
Tacit collusion
Transfer pricing
Peak-load pricing
Examples of Monopolistic Competition
44. When managers are able to charge each consumer their reservation price. Examples are car and home sales
Price war
Economies of scale
Strategic behavior
First-Degree Price Discrimination (Perfect)
45. When the decisions of two or more firms significantly affect each others' profits
First-Degree Price Discrimination (Perfect)
Extensive-form game
Leader
Interdependence
46. A strategy whereby a player randomizes over two or more available actions in order to keep rivals from being able to predict his action
Credible threat
Maximizing profit in Oligopoly games
Transfer pricing
Mixed (randomized) strategy
47. Price Sensitive
Tacit collusion
Non-cooperative behavior
Non-cooperative equilibrium
High Price Elasticity
48. A pricing strategy in which profits gained from the sale of one product are used to subsidize sales of a related product
Trigger strategy
Cross-subsidy pricing
Sequential-move game
Horizontal Merger/Integration
49. In game theory - a game that is played again sometime after the previous game ends
Commodity bundling
Open Collusion
Repeated game
Four-firm concentration ratio
50. Demand line is above ATC curve
The Threat from Potential Entrants Firms
Randomized pricing
Perfect Competitor Making a Profit
Follower