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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. 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






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






4. Demand line is above ATC curve






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






6. A firm whose price decisions are tacitly accepted and followed by others in the industry






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






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






9. Revenue-Costs






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






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






12. Produce differentiated products. Make a profit or take a lost in the short run - in the long run the firm will break even. (MOST number of firms.)






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. 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






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






16. Produce identical products






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






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






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






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






21. 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






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






23. Identical or substitutable






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






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






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






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






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






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






30. Takes Place inside the Mind of the consumer






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






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






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






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






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






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






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






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






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






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






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






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






43. 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






44. Simultaneous move game that is not repeated






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






46. Involves price-fixing






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






48. 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






49. When a manager makes a noncooperative decision






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