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 maximum price that a buyer is willing to pay for a good - or the minimum price that a seller will accept






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






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






4. Takes Place inside the Mind of the consumer






5. Steel - autos - colas - airlines






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






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






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






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






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






11. Both players have dominant strategies and play them






12. When a manager makes a noncooperative decision






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






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






15. Rules - strategies - payoffs - outcomes






16. An oligopoly in which the sales of the leading (top four) firms are distributed unevenly among them






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






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






19. 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






20. 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






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






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






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






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






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






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






28. An industry where (1) there are few firms serving many customers; (2) firms produce differentiated products; (3) each firm believes rivals will respond to price reductions but will not follow price increases; and (4) barriers to entry exist






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






30. When the decisions of two or more firms significantly affect each others' profits






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






32. 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






33. 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






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






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






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






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






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






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






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






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






42. 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






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






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






45. Simultaneous move game that is not repeated






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






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






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






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






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