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. Specific assets - Economies of scale - Excess capacity - Reputation effects
Covert Collusion
Cooperation
Perfect Competition Barriers to Entry
Sweezy oligopoly
2. Using advertising and other means to try to increase a firm's sales
Differentiated oligopoly
Cournot oligopoly
Cooperative equilibrium
Non-price competition
3. In game theory - benefit obtained by party that moves first in a sequential game
Monopolistic Competition
First-mover advantage
Simultaneous decision games
Price Leadership
4. The maximum price that a buyer is willing to pay for a good - or the minimum price that a seller will accept
Reservation Price
Competitive market
Unbalanced Oligopoly
Two-part pricing
5. Rules - strategies - payoffs - outcomes
Lerner index
Price war
Herfindahl-Hirschman index (HHI)
What is game?
6. Where a firm can charge different groups of consumers different prices for the same product. Example: student or senior discounts
Sequential game
Tacit collusion
Third-degree price discrimination
Product Differentiation
7. Anything that keeps new firms from entering an industry in which firms are earning economic profits (e.g. Ownership of a Key Input - Capital - Patents - Economies of scale)
Monopolistic Characteristics:
Barrier to entry
Dominant strategy equilibrium
Limit price
8. Both players have dominant strategies and play them
Dominant strategy equilibrium
Third-Degree Price Discrimination
Market Structure
Repeated game
9. If production of a good requires a particular input - then control of that input can be a barrier to entry
Block pricing
Ownership of a Key Input
Primary Sources of Monopolistic Power
Sequential-move game
10. 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
Primary Sources of Monopolistic Power
Randomized pricing
Socially optimal price
Prisoners' dilemma
11. (1) Economies of Scale; (2) Economies of Scope; (3) Cost Complementarity; and (4)Patents & Other Legal Barriers
Cournot equilibrium
Examples of Monopolistic Competition
Primary Sources of Monopolistic Power
Rent-seeking behavior
12. In game theory - game where parties make their moves in turn - one party making the first move followed by the other
Sequential-move game
Sequential game
Mutual interdependence
Mixed (randomized) strategy
13. Different units of a product are sold at different prices. Examples are buying in bulk - or - commodity-bundling
Socially optimal price
Limit price
Limit pricing
Second-Degree Price Discrimination
14. Revenue-Costs
Homogenous oligopoly
Profit
Stackelberg oligopoly
Rent-seeking behavior
15. Ignoring the effects of their actions on each others' profits
Marginal Revenue
Implicit Collusion
Cournot oligopoly
Non-cooperative behavior
16. In game theory - a statement of harmful intent easily dismissed by recipient because threat not considered believable
Implicit Collusion
Empty threat
No cooperative equilibrium
Mixed (randomized) strategy
17. Many buyers and sellers - product homogeneity - low cost and accurate information - free entry and exit - best regarded as a benchmark
Payoff
Minimum efficient scale (full capacity)
Perfect Competition (characteristics)
Simultaneous consumption
18. 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
Kinked-demand curve
Import competition
What is game?
Tacit collusion
19. 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
Limit pricing
Differentiated oligopoly
Network effects
Mutual Interdependence
20. A product's ability to satisfy a large number of consumers at the same time
Non-cooperative behavior
Simultaneous consumption
Simultaneous decision games
Marginal Revenue
21. The competition that domestic firms encounter from the products and services of foreign producers
Monopoly (characteristics)
Non-price competition
Price discrimination
Import competition
22. An equilibrium in a game in which players cooperate to increase their mutual payoff
Disappearing invisible hand
Conglomerate Merger
Trigger strategy
Cooperative equilibrium
23. When firms make decisions that make every firm better off than in a noncooperative Nash equilibrium
Cooperation
Sequential game
Non-price competition
Collusion
24. When something can be consumed without reducing the benefits available for subsequent consumption; can be consumed without supporting rivalry between consumers
Economies of scale
Price discrimination
Inter-industry competition
Non-rivalrous consumption
25. Rival who sets its output after the leader (Stackelberg's model)
Third-Degree Price Discrimination
Payoff table
Repeated game
Follower
26. Multiple firms make the same pricing decisions even though they have not explicitly consulted with each other
Kinked-demand curve
Implicit Collusion
Two-part pricing
Four-firm concentration ratio
27. The physical characteristics of the market within which firms interact
Market Structure
Pure monopoly
Lerner index
Network effects
28. A simpler way to operationalize first-degree price discrimination
Two-part Tariff Method of Pricing
Third-Degree Price Discrimination
Collusion
Dominant strategy
29. The smallest quantity at which the average cost curve reaches its minimum
Equilibrium
Dominant firm oligopoly
No cooperative equilibrium
Minimum efficient scale (full capacity)
30. Keeps the price just where it is to maximize profit
Barrier to entry
Cutthroat Competition
Empty threat
Collusion
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
Primary Sources of Monopolistic Power
Kinked-demand curve
What is game?
Mixed (randomized) strategy
32. If buyers have enough bargaining power - they can insist on lower prices - higher-quality products - or additional services
Bargaining Power of Buyers
Monopolistic Competition
First-Degree Price Discrimination (Perfect)
Sequential game
33. Game in which each player makes decisions without knowledge of the other player's decisions
Sequential game
Simultaneous-move game
Competitive market
Third-Degree Price Discrimination
34. 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
Perfect Competition Short Run Supply
Contestable market
Non-cooperative behavior
Mutual interdependence
35. The price that is low enough to deter entry
Limit price
Nash equilibrium
Two-part pricing
Dominant strategy equilibrium
36. A game that is played over and over again forever and in which players receive payoffs during each play of the game
Perfect Competition (characteristics)
Third-degree price discrimination
The Threat from Potential Entrants Firms
Indefinitely repeated game
37. A situation in which all decision makers know the payoff table - and they believe all other decision makers also know the payoff table
Common knowledge
The Threat from Potential Entrants Firms
Non-cooperative behavior
Limit pricing
38. 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
Implicit Collusion
Non-cooperative equilibrium
Two-part pricing
Covert Collusion
39. An index of market concentration. Sum of squared market shares of all the firms in the industry times 10K HHI=10 - 000Σwi2
Concentration Ratio
Herfindahl-Hirschman index (HHI)
Brand Multiplication
Four-firm concentration ratio
40. An oligopoly in which the sales of the leading (top four) firms are distributed unevenly among them
Transfer pricing
Unbalanced Oligopoly
Price matching
Bargaining Power of Buyers
41. 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
Profit
Monopolistic Competition
Dominant strategy equilibrium
Nash equilibrium
42. Industry where (1) there are few firms serving many customers; (2) firms produce either differentiated or homogenous products; (3) each form believes rivals will hold their output constant if it changes its output; and (4) barriers to entry exist. Fi
Cournot oligopoly
Dominant strategy
Payoff matrix
Minimum efficient scale (full capacity)
43. Actions taken by a firm to achieve a goal - such as maximizing profits
Business strategy
Follower
Implicit Collusion
The Threat from Potential Entrants Firms
44. A representation of a game indicating the players - their possible strategies - and the payoffs resulting from alternative strategies
Perfect Competition (characteristics)
Monopolistic Competition
Sequential game
Normal-form game
45. Sellers can identify different types of customers and offer each a different price. Examples are special prices for students or the elderly
Price discrimination
Joint Venture
Third-Degree Price Discrimination
Dominant strategy
46. Variations on one good so that a firm can increase market sharea
Rothschild index
Non-cooperative equilibrium
One-shot game
Brand Multiplication
47. 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
Limit pricing
Dominant strategy
First-mover advantage
Non-cooperative equilibrium
48. A strategy that guarantees the highest payoff given the worst possible scenario
Patent
Secure strategy
Transfer pricing
Two-part Tariff Method of Pricing
49. Involves price-fixing
Imperfect competition
Limit pricing
Nash equilibrium
Covert Collusion
50. The situation that exists when two or more groups need each other and must depend on each other to accomplish a goal that is important to each of them
Mutual Interdependence
Tacit collusion
First-mover advantage
Double marginalization