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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. Price Sensitive






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






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






4. When something can be consumed without reducing the benefits available for subsequent consumption; can be consumed without supporting rivalry between consumers






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






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






7. An equilibrium in a game in which players do not cooperate but pursue their own self-interest






8. Industry in which (1) there are few firms serving many customers; (2) firms produce either differentiated or homogenous products; (3) a single (leader) firm chooses an output quantity before their rivals select their outputs; (4) all other (follower)






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






10. Revenue-Costs






11. The rules describe the setting of the game - the actions the players may take - and the consequences of those actions; -Advertising and R&D are also prisoners' dilemmas

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






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






14. The price that is low enough to deter entry






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






16. A situation in which neither firm has incentive to change its output given the other firm's output






17. 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






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






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






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






23. Physical differences - Convenience - Ambience - Reputations - Appeals to vanity - Unconscious fears and desires - Snob appeal - Customized products






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






25. 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






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






27. Both players have dominant strategies and play them






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






29. 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"






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






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






32. 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






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






34. Using advertising and other means to try to increase a firm's sales






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






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






37. The exclusive right to a product for a period of 20 years from the date the product is invented






38. (1) Economies of Scale; (2) Economies of Scope; (3) Cost Complementarity; and (4)Patents & Other Legal Barriers






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






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






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






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






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






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






45. 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






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






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






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






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






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