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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. Identical or substitutable






2. A strategy that is contingent on the past play of a game and ion which some particular past action "triggers" a different action by a player






3. 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






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






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






6. Specific assets - Economies of scale - Excess capacity - Reputation effects






7. The percentage of the total industry sales accounted for by the four largest firms in the industry. OUTPUT of 4 largest firms over TOTAL output in industry. C4=(S1+...+S4)/St or (w1+...+w4)






8. 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






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






10. 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






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






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






13. 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






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






15. Produce identical products






16. 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






17. Rival who sets its output after the leader (Stackelberg's model)






18. Pricing strategy in which a firm intentionally varies its price in an attempt to "hide" price information from consumers and rivals






19. 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)






20. Both players have dominant strategies and play them






21. A table that shows the payoffs that each firm earns from every combination of strategies by the firms






22. A merger between two firms in the same industry. Example: 2004 K-Mart merged with Sears






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






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






25. 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






26. A situation in which a change in price strategy by one firm affects sales and profits of another






27. When a manager makes a noncooperative decision






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






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






30. 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






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






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






33. When firms make decisions that make every firm better off than in a noncooperative Nash equilibrium






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






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






36. 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






37. 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)






38. 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






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






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






41. 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






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






43. 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






44. 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






45. If many firms can supply an input and the input is not specialized - the suppliers are unlikely to have the bargaining power to limit a firm's profits






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






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






48. The price that is low enough to deter entry






49. A strategy whereby a player randomizes over two or more available actions in order to keep rivals from being able to predict his action






50. A condition describing a set of strategies that constitutes a Nash equilibrium and allows no player to improve their own payoff at any stage of the game by changing strategies