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. An establishment firm commits to setting price below the profit-maximizing level to prevent entry
Interdependence
Tit-for-tat strategy
Stackelberg oligopoly
Limit pricing
2. A table showing - for every possible combination of decisions players can make - the outcomes or "payoffs" for each of the players in each decision combination
Collusion
Cheating
Payoff table
Non-price competition
3. A measure of the difference between price and marginal cost as a fraction of the product's price. L=(P-MC)/P - refactoring gives: P=MC(1/(1-L)) - which gives us the "1/(1-L)" markup factor
One-shot game
Cutthroat Competition
Price discrimination
Lerner index
4. Marginal cost curve above average variable cost - P* = SRMC
Perfect Competition Short Run Supply
Limit price
Payoff matrix
Imperfect competition
5. When firms limit production and raise prices in a way that raises each others' profits - even though they have not made any formal agreement
Tacit collusion
Price discrimination
Rothschild index
Socially optimal price
6. Steel - autos - colas - airlines
Cooperation
Ownership of a Key Input
Competitive market
Examples of Oligopoly
7. 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
Simultaneous-move game
Prisoners' dilemma
Nash equilibrium
Normal-form game
8. When a manager makes a noncooperative decision
Cheating
Monopolistic Characteristics:
Payoff matrix
Conglomerate Merger
9. Produce identical products
Double marginalization
Perfect Competitor Characteristics
Socially optimal price
Dansby-Willig performance index
10. Intense competition in which competitors cut retail prices to gain business--oligopolistic competition
Price war
Natural Monopoly (local phone or electric company)
Limit pricing
Subgame perfect equilibrium
11. A merger between two firms in the same industry. Example: 2004 K-Mart merged with Sears
Market Structure
Non-price competition
Horizontal Merger/Integration
Homogenous oligopoly
12. Actions taken by a firm to achieve a goal - such as maximizing profits
Unbalanced Oligopoly
Profit
Business strategy
Bertrand oligopoly
13. 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
Prisoner's dilemma
Kinked-demand curve
Mutual Interdependence
Randomized pricing
14. In game theory - a decision rule that describes the actions a player will take at each decision point
Strategy
Competitive market
Mutual interdependence
Double marginalization
15. Different units of a product are sold at different prices. Examples are buying in bulk - or - commodity-bundling
Payoff matrix
Payoff matrix
Dominant strategy
Second-Degree Price Discrimination
16. If buyers have enough bargaining power - they can insist on lower prices - higher-quality products - or additional services
Duopoly
Equilibrium
Bargaining Power of Buyers
Limit pricing
17. A situation in which all decision makers know the payoff table - and they believe all other decision makers also know the payoff table
Imperfect competition
Undifferentiated
Common knowledge
Cooperation
18. The maximum price that a buyer is willing to pay for a good - or the minimum price that a seller will accept
Network effects
Reservation Price
Open Collusion
Covert Collusion
19. Pricing strategy in which a firm optimally sets the internal price at which an upstream division wells an input to a downstream division
Brand Multiplication
Maximizing profit in Oligopoly games
Transfer pricing
Minimum efficient scale (full capacity)
20. The situation when a firm's long-run average costs fall as it increases output
Economies of scale
Imperfect competition
Bargaining Power of Suppliers
Dominant strategy
21. Involves price-fixing
Brand Multiplication
Joint Venture
Covert Collusion
Concentration Ratio
22. A strategy that guarantees the highest payoff given the worst possible scenario
Secure strategy
No cooperative equilibrium
Competitive market
Non-price competition
23. 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
What is game?
Non-cooperative equilibrium
Oligopoly
Mutual interdependence
24. An oligopoly in which the sales of the leading (top four) firms are distributed unevenly among them
Transfer pricing
Unbalanced Oligopoly
Homogenous oligopoly
Commodity bundling
25. All firms and individuals willing and able to buy or sell a particular product
Prisoner's dilemma
Simultaneous-move game
Market
Cournot equilibrium
26. A measure of market power - the percentage of all sales that is accounted for by the four or eight largest firms in the market
Product differentiation
Normal-form game
Open Collusion
Concentration Ratio
27. Takes Place inside the Mind of the consumer
Business strategy
Horizontal Merger/Integration
Product Differentiation
Tacit collusion
28. A merger of firms in unrelated industries. Example: If Purina Dow Chow merged with Pampers Diaper Company
Rent-seeking behavior
High Price Elasticity
Conglomerate Merger
Vertical Merger
29. An attempt by a firm to convince buyers that its product is different from the products of other firms in the industry
Natural Monopoly (local phone or electric company)
Market
Product differentiation
Sequential-move game
30. First firm to set its output (Stackelberg's model)
Leader
Non-cooperative behavior
Patent
No cooperative equilibrium
31. A strategy or action that always provides the best outcome no matter what decisions rivals make
Prisoner's dilemma
Secure strategy
Extensive-form game
Dominant strategy
32. Simultaneous move game that is not repeated
Cournot equilibrium
Block pricing
Disappearing invisible hand
One-shot game
33. The competition for sales between the products of one industry and the products of another industry
Open Collusion
Inter-industry competition
Market Structure
Fair return price
34. Increases in the value of a product to each user - including existing users - as the total number of users rises
Mutual interdependence
Network effects
Stackelberg oligopoly
Examples of Monopolistic Competition
35. The physical characteristics of the market within which firms interact
Prisoners' dilemma
Rent-seeking behavior
Tit-for-tat strategy
Market Structure
36. Operates like the alleged Mafia. Region division of the market among the firms in the industry
Open Collusion
Payoff
Indefinitely repeated game
Pure monopoly
37. A product's ability to satisfy a large number of consumers at the same time
Cross-subsidy pricing
Basis for Product Differentiation
Peak-load pricing
Simultaneous consumption
38. The actions by persons - firms - or unions to gain special benefits from government at taxpayer's or someone else's expense
Strategy
Rent-seeking behavior
Mixed (randomized) strategy
Bargaining Power of Buyers
39. 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
Cooperative equilibrium
Finding profit for oligopoly games
Sequential-move game
High Price Elasticity
40. 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
Price war
Payoff matrix
Disappearing invisible hand
Bertrand oligopoly
41. 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
Dominant firm oligopoly
Ownership of a Key Input
Sweezy oligopoly
Natural Monopoly (local phone or electric company)
42. Occurs when a firm produces output - whatever its level - at a higher cost than is necessary to produce it
Inefficiency
Horizontal Merger/Integration
Profit
Leader
43. When no one firm has a monopoly - but producers nonetheless realize that they can affect market prices. Firms compete but possess market power
Extensive-form game
Third-Degree Price Discrimination
Payoff
Imperfect competition
44. A situation in which no one wants to change his or her behavior
Equilibrium
Two-part Tariff Method of Pricing
Reservation Price
Fair return price
45. The practice of charging different prices to consumers for the same good or service
Cutthroat Competition
Price discrimination
Bargaining Power of Suppliers
Mutual interdependence
46. Multiple firms make the same pricing decisions even though they have not explicitly consulted with each other
Monopolistic Competition
Two-part pricing
Implicit Collusion
Cross-subsidy pricing
47. The exclusive right to a product for a period of 20 years from the date the product is invented
Undifferentiated
Unbalanced Oligopoly
Cournot oligopoly
Patent
48. Sellers can identify different types of customers and offer each a different price. Examples are special prices for students or the elderly
High Price Elasticity
Competitive market
Third-Degree Price Discrimination
Follower
49. A situation in which competing firms must make their individual decisions without knowing the decisions of their rivals
Patent
Simultaneous decision games
Strategic behavior
Open Collusion
50. A merger between firms who have a buyer/supplier relationship. Example: BF Goodrich merging with rubber plantations
Vertical Merger
Examples of Monopolistic Competition
Transfer pricing
Natural Monopoly (local phone or electric company)
Sorry!:) No result found.
Can you answer 50 questions in 15 minutes?
Let me suggest you:
Browse all subjects
Browse all tests
Most popular tests
Major Subjects
Tests & Exams
AP
CLEP
DSST
GRE
SAT
GMAT
Certifications
CISSP go to https://www.isc2.org/
PMP
ITIL
RHCE
MCTS
More...
IT Skills
Android Programming
Data Modeling
Objective C Programming
Basic Python Programming
Adobe Illustrator
More...
Business Skills
Advertising Techniques
Business Accounting Basics
Business Strategy
Human Resource Management
Marketing Basics
More...
Soft Skills
Body Language
People Skills
Public Speaking
Persuasion
Job Hunting And Resumes
More...
Vocabulary
GRE Vocab
SAT Vocab
TOEFL Essential Vocab
Basic English Words For All
Global Words You Should Know
Business English
More...
Languages
AP German Vocab
AP Latin Vocab
SAT Subject Test: French
Italian Survival
Norwegian Survival
More...
Engineering
Audio Engineering
Computer Science Engineering
Aerospace Engineering
Chemical Engineering
Structural Engineering
More...
Health Sciences
Basic Nursing Skills
Health Science Language Fundamentals
Veterinary Technology Medical Language
Cardiology
Clinical Surgery
More...
English
Grammar Fundamentals
Literary And Rhetorical Vocab
Elements Of Style Vocab
Introduction To English Major
Complete Advanced Sentences
Literature
Homonyms
More...
Math
Algebra Formulas
Basic Arithmetic: Measurements
Metric Conversions
Geometric Properties
Important Math Facts
Number Sense Vocab
Business Math
More...
Other Major Subjects
Science
Economics
History
Law
Performing-arts
Cooking
Logic & Reasoning
Trivia
Browse all subjects
Browse all tests
Most popular tests