Test your basic knowledge |

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






2. Demand line is above ATC curve






3. An establishment firm commits to setting price below the profit-maximizing level to prevent entry






4. Produce identical products






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






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






7. The competition that domestic firms encounter from the products and services of foreign producers






8. 2 firms - simplest case in an oligopoly. Profits higher if limiting their production






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






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






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






12. 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

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13. An index of market concentration. Sum of squared market shares of all the firms in the industry times 10K HHI=10 - 000Σwi2






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






15. 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






16. Takes Place inside the Mind of the consumer






17. 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






18. 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






19. Different units of a product are sold at different prices. Examples are buying in bulk - or - commodity-bundling






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






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






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






23. 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)






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






25. Price Sensitive






26. Both players have dominant strategies and play them






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






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






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






30. 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






31. 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)






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






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






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






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






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






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






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






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






40. Set marginal cost for the cartel equal to marginal revenue for the cartel; -cartel's marginal cost curve is the horizontal sum of the MC curves of the two firms; -Marginal revenue curve is like that of a monopoly






41. The derivative of total revenue






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






43. A strategy that guarantees the highest payoff given the worst possible scenario






44. Game in which each player makes decisions without knowledge of the other player's decisions






45. Variations on one good so that a firm can increase market sharea






46. Identical or substitutable






47. 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






48. 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






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






50. A table that shows the payoffs that each firm earns from every combination of strategies by the firms