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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 cooperate to increase their mutual payoff






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






3. Nash equilibrium - the result when each player in a game chooses the action that maximizes his or her payoff given the actions of other players - ignoring the effects of his or her action on the payoffs received by those players (when you confess w






4. 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






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






6. 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






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






8. 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






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






10. 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






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






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






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






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






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






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






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






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






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






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






21. A product's ability to satisfy a large number of consumers at the same time






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 situation in which all decision makers know the payoff table - and they believe all other decision makers also know the payoff table






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






25. 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






26. When a manager makes a noncooperative decision






27. 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






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






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






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






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






32. The derivative of total revenue






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






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






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






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






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






38. A pricing strategy in which profits gained from the sale of one product are used to subsidize sales of a related product






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






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






42. A measure of the sensitivity to price of a product group as a whole relative to the sensitivity of the quantity demanded of a single firm to a change in its price. R=Et/Ef






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






44. Rules - strategies - payoffs - outcomes






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






46. Simultaneous move game that is not repeated






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






48. 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






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






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