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






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






3. Pricing strategy in which a firm intentionally varies its price in an attempt to "hide" price information from consumers and rivals






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






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






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






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






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






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






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






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






13. 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






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






15. Involves price-fixing






16. 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






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






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






19. 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






20. Takes Place inside the Mind of the consumer






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






22. 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"






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






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






25. 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






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






27. 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






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






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






30. 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






31. Produce identical products






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






33. Rules - strategies - payoffs - outcomes






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






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






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






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






38. 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






39. 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

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






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






42. Using advertising and other means to try to increase a firm's sales






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






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






45. Identical or substitutable






46. 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






47. 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






48. 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






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






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