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






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






3. 1/(1+i)n






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






5. Maximize economic profit by producing the quantity at which MC=MR






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






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






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






9. 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






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






11. Toothpaste - shampoo - restaurants - banks






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






13. 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






14. Marginal cost curve above average variable cost - P* = SRMC






15. 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






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






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






18. The derivative of total revenue






19. When a manager makes a noncooperative decision






20. 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


21. 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)






22. 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






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






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






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






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






28. Involves price-fixing






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






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






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






32. If buyers have enough bargaining power - they can insist on lower prices - higher-quality products - or additional services






33. Both players have dominant strategies and play them






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






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






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






37. Demand line is above ATC curve






38. 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






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






40. 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


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






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






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






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






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






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






47. Revenue-Costs






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






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






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