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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. Simultaneous move game that is not repeated






2. The situation when a firm's long-run average costs fall as it increases output






3. Both players have dominant strategies and play them






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






5. The derivative of total revenue






6. 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






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






8. Price Sensitive






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






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






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






12. 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






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






14. 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






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






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






17. In game theory - a statement of harmful intent easily dismissed by recipient because threat not considered believable






18. Demand line is above ATC curve






19. In game theory - a decision rule that describes the actions a player will take at each decision point






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






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






22. Identical or substitutable






23. 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






24. 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






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






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






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






28. When a manager makes a noncooperative decision






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






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






31. A merger between firms who have a buyer/supplier relationship. Example: BF Goodrich merging with rubber plantations






32. Steel - autos - colas - airlines






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






34. Revenue-Costs






35. An establishment firm commits to setting price below the profit-maximizing level to prevent entry






36. 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






37. A strategy that guarantees the highest payoff given the worst possible scenario






38. 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






39. 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






40. Ranks industries according to how much social welfare would improve if the output in an industry were increased by a small amount






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






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






43. 1/(1+i)n






44. In game theory - a statement of harmful intent by one party that the other party views as believable-- "if you do this - we will do that"






45. 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






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






47. Operates like the alleged Mafia. Region division of the market among the firms in the industry






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






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






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