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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. The derivative of total revenue






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






3. 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






4. When firms limit production and raise prices in a way that raises each others' profits - even though they have not made any formal agreement






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






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






7. When a manager makes a noncooperative decision






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






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






10. A measure of the difference between price and marginal cost as a fraction of the product's price. L=(P-MC)/P - refactoring gives: P=MC(1/(1-L)) - which gives us the "1/(1-L)" markup factor






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






12. The practice of charging different prices to consumers for the same good or service






13. 2 firms - simplest case in an oligopoly. Profits higher if limiting their production






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






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






16. A measure of market power - the percentage of all sales that is accounted for by the four or eight largest firms in the market






17. 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)






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






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






20. A condition describing a set of strategies that constitutes a Nash equilibrium and allows no player to improve their own payoff at any stage of the game by changing strategies






21. A situation in which a change in price strategy by one firm affects sales and profits of another






22. Steel - autos - colas - airlines






23. Demand line is above ATC curve






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






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






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






27. Revenue-Costs






28. Keeps the price just where it is to maximize profit






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






30. 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






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






32. 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






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






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






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






36. Takes Place inside the Mind of the consumer






37. Toothpaste - shampoo - restaurants - banks






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






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






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






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






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






43. 1/(1+i)n






44. 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






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






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






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






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






49. 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






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