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






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






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






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






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






6. Long-run marginal cost curve above long-run average cost






7. Involves price-fixing






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






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






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






11. Each firm believes that if it raises its price - its competitors will not follow - but if it lowers its price all of its competitors will follow; -a model in which firms in an oligopoly match price cuts by other firms - but do not match price hike






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






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






14. Price Sensitive






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






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






17. A strategy that is contingent on the past play of a game and ion which some particular past action "triggers" a different action by a player






18. A situation in which no one wants to change his or her behavior






19. 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)






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






21. 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






22. 1/(1+i)n






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






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






25. Steel - autos - colas - airlines






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






27. Demand line is above ATC curve






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






29. Pricing strategy in which higher prices are charged during peak hours than during off-peak hours






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






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






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






33. The competition that domestic firms encounter from the products and services of foreign producers






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






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






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






37. A business arrangement in which two or more firms undertake a specific economic activity together. Once the activity is over - the firms go their own way






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






39. A strategy in which a firm advertises a price and a promise to match any lower prices offered by a competitor






40. A situation in which neither firm has incentive to change its output given the other firm's output






41. Revenue-Costs






42. When a manager makes a noncooperative decision






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






44. Physical differences - Convenience - Ambience - Reputations - Appeals to vanity - Unconscious fears and desires - Snob appeal - Customized products






45. 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






46. 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.)






47. A condition describing a set of strategies in which no player can improve their payoff by unilaterally changing their own strategy given the other player's strategy






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






49. When something can be consumed without reducing the benefits available for subsequent consumption; can be consumed without supporting rivalry between consumers






50. 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