SUBJECTS
|
BROWSE
|
CAREER CENTER
|
POPULAR
|
JOIN
|
LOGIN
Business Skills
|
Soft Skills
|
Basic Literacy
|
Certifications
About
|
Help
|
Privacy
|
Terms
|
Email
Search
Test your basic knowledge |
Business Competition
Start Test
Study First
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. A situation where one firm is able to provide a service at a lower cost than could several competing firms
Natural Monopoly (local phone or electric company)
Minimum efficient scale (full capacity)
Perfect Competition Short Run Supply
Perfect Competition Barriers to Entry
2. All firms and individuals willing and able to buy or sell a particular product
Repeated game
Undifferentiated
Price Leadership
Market
3. Physical differences - Convenience - Ambience - Reputations - Appeals to vanity - Unconscious fears and desires - Snob appeal - Customized products
Socially optimal price
Basis for Product Differentiation
Subgame perfect equilibrium
One-shot game
4. Sets the price at the highest level that is consistent with keeping the potential entrant out. -The strategy of reducing the price to deter entry
Four-firm concentration ratio
Limit pricing
No cooperative equilibrium
Merger
5. Game in which each player makes decisions without knowledge of the other player's decisions
Simultaneous consumption
Subgame perfect equilibrium
Simultaneous-move game
Kinked-demand curve
6. In game theory - a decision rule that describes the actions a player will take at each decision point
Herfindahl-Hirschman index (HHI)
Simultaneous consumption
Strategy
What is game?
7. A strategy whereby a player randomizes over two or more available actions in order to keep rivals from being able to predict his action
Equilibrium
Mixed (randomized) strategy
Perfect Competitor Characteristics
Kinked-demand curve
8. Actions taken by firms to plan for and react to competition from rival firms
Strategic behavior
Import competition
Primary Sources of Monopolistic Power
Joint Venture
9. Ranks industries according to how much social welfare would improve if the output in an industry were increased by a small amount
Payoff
Dansby-Willig performance index
Minimum efficient scale (full capacity)
Product differentiation
10. The situation when a firm's long-run average costs fall as it increases output
Price war
Minimum efficient scale (full capacity)
Economies of scale
Rothschild index
11. Variations on one good so that a firm can increase market sharea
Maximizing profit in Oligopoly games
Follower
Brand Multiplication
Block pricing
12. An oligopoly in which the sales of the leading (top four) firms are distributed unevenly among them
Unbalanced Oligopoly
Non-price competition
Herfindahl-Hirschman index (HHI)
Dominant strategy equilibrium
13. 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
Mutual interdependence
Bargaining Power of Suppliers
Nash equilibrium
Nonprime competition
14. Different units of a product are sold at different prices. Examples are buying in bulk - or - commodity-bundling
Product differentiation
Second-Degree Price Discrimination
Simultaneous decision games
Disappearing invisible hand
15. An agreement among firms in a market about quantities to produce or prices to charge in attempts to limit competition
Collusion
Disappearing invisible hand
Price discrimination
Economies of scale
16. 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)
Import competition
Stackelberg oligopoly
Herfindahl-Hirschman index (HHI)
Normal-form game
17. Where a firm can charge different groups of consumers different prices for the same product. Example: student or senior discounts
Vertical Merger
Third-degree price discrimination
Basis for Product Differentiation
Merger
18. 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
Monopolistic Competition
One-shot game
Minimum efficient scale (full capacity)
Non-price competition
19. An index of market concentration. Sum of squared market shares of all the firms in the industry times 10K HHI=10 - 000Σwi2
Stackelberg oligopoly
Herfindahl-Hirschman index (HHI)
Two-part pricing
Minimum efficient scale (full capacity)
20. 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
Marginal Revenue
Strategic behavior
Non-cooperative behavior
Contestable market
21. Game in which one player makes a move after observing the other player's move
Sequential-move game
Kinked demand curve model
Third-Degree Price Discrimination
Natural Monopoly (local phone or electric company)
22. Price Sensitive
Horizontal Merger/Integration
Payoff table
Rothschild index
High Price Elasticity
23. Using advertising and other means to try to increase a firm's sales
Nonprime competition
Non-price competition
Dominant strategy equilibrium
Sequential game
24. A situation in which no one wants to change his or her behavior
Equilibrium
Nonprime competition
Kinked demand curve model
Undifferentiated
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
Strategy
Perfect Competition Short Run Supply
Extensive-form game
Merger
26. A simpler way to operationalize first-degree price discrimination
Payoff table
Payoff matrix
Two-part Tariff Method of Pricing
Natural Monopoly (local phone or electric company)
27. When managers are able to charge each consumer their reservation price. Examples are car and home sales
First-Degree Price Discrimination (Perfect)
Price matching
Perfect Competitor Making a Profit
Product Differentiation
28. 2 firms - simplest case in an oligopoly. Profits higher if limiting their production
Trigger strategy
Limit pricing
Ownership of a Key Input
Duopoly
29. The physical characteristics of the market within which firms interact
Business strategy
Market Structure
Differentiated oligopoly
Cournot equilibrium
30. A few firms produce most market output - Products may or may not be differentiated - Effective entry barriers protect firm profitability - Firm interdependence requires strategic thinking
Perfect Competitor Making a Profit
Commodity bundling
Peak-load pricing
Oligopoly
31. 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
32. Actions taken by a firm to achieve a goal - such as maximizing profits
Homogenous oligopoly
Monopoly (characteristics)
Business strategy
Follower
33. One large firm that has a significant cost advantage over many other - smaller competing firms; -the large firm operates as a monopoly: setting price and output to maximize profit; -the small firms act as perfect competitors: taking as given the mar
Indefinitely repeated game
Vertical Merger
Dominant firm oligopoly
Basis for Product Differentiation
34. Toothpaste - shampoo - restaurants - banks
Limit pricing
Import competition
Examples of Monopolistic Competition
Network effects
35. Price of a product that enables its producer to obtain a normal profit & that is equal to the ATC of producing it
Fair return price
Prisoners' dilemma
Cheating
Duopoly
36. Pricing strategy in which a firm optimally sets the internal price at which an upstream division wells an input to a downstream division
Transfer pricing
Perfect Competitor Characteristics
Imperfect competition
Payoff
37. In game theory - benefit obtained by party that moves first in a sequential game
Conglomerate Merger
Ownership of a Key Input
Rent-seeking behavior
First-mover advantage
38. A pricing strategy in which profits gained from the sale of one product are used to subsidize sales of a related product
Monopolistic Competition
Cross-subsidy pricing
Nash equilibrium
Rent-seeking behavior
39. 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
Two-part pricing
Pure monopoly
Follower
Herfindahl-Hirschman index (HHI)
40. Cooperation among firms that does not involve an explicit agreement
Kinked-demand curve
Tacit collusion
Strategy
Simultaneous decision games
41. Marginal cost curve above average variable cost - P* = SRMC
Tit-for-tat strategy
Reservation Price
Perfect Competition Short Run Supply
Strategy
42. A trigger strategy that punishes after an episode of cheating and returns to cooperation if cheating ends
One-shot game
Product differentiation
Dominant strategy equilibrium
Tit-for-tat strategy
43. An equilibrium in a game in which players do not cooperate but pursue their own self-interest
Duopoly
No cooperative equilibrium
Cooperation
Payoff matrix
44. A combination of two or more companies into one company
Merger
Kinked demand curve model
Equilibrium
Contestable market
45. Multiple firms make the same pricing decisions even though they have not explicitly consulted with each other
Non-price competition
Collusion
Implicit Collusion
Import competition
46. Both players have dominant strategies and play them
Perfect Competition Long Run Supply
Dominant strategy equilibrium
Payoff matrix
Nonprime competition
47. Long-run marginal cost curve above long-run average cost
Simultaneous-move game
Limit price
Perfect Competition Long Run Supply
Bertrand oligopoly
48. 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
Joint Venture
Non-cooperative equilibrium
Lerner index
Randomized pricing
49. Involves price-fixing
Covert Collusion
Sweezy oligopoly
First-Degree Price Discrimination (Perfect)
Ownership of a Key Input
50. The practice of bundling several different products together and selling them at a single "bundle" price
Price matching
Present Value (PV)
Cheating
Commodity bundling