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






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






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






4. The derivative of total revenue






5. Each seller can sell all he wants to sell at the going price - Buyers and sellers are price takers - The goods offered by the different sellers are largely the same - The actions of any single buyer or seller will have a negligible impact on the m






6. Involves price-fixing






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






8. The price that is low enough to deter entry






9. 2 firms - simplest case in an oligopoly. Profits higher if limiting their production






10. 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






11. A trigger strategy that punishes after an episode of cheating and returns to cooperation if cheating ends






12. A simpler way to operationalize first-degree price discrimination






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






14. 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






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






16. Toothpaste - shampoo - restaurants - banks






17. If production of a good requires a particular input - then control of that input can be a barrier to entry






18. The players end up worse off than they would if they were able to cooperate; -the pursuit of self-interest does not promote the social interest in these games






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






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






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






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






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






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






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






26. 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






27. 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






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






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






30. 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






31. 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






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






33. 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






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






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






36. A table that shows the payoffs for every possible action by each player for every possible action by the other player






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






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






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






40. 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






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






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






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






44. Set marginal cost for the cartel equal to marginal revenue for the cartel; -cartel's marginal cost curve is the horizontal sum of the MC curves of the two firms; -Marginal revenue curve is like that of a monopoly






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






46. 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






47. An index of market concentration. Sum of squared market shares of all the firms in the industry times 10K HHI=10 - 000Σwi2






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






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






50. Demand line is above ATC curve