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






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






3. An oligopoly in which the firms produce a differentiated product






4. 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






5. 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






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






7. Marginal cost curve above average variable cost - P* = SRMC






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






9. 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






10. The practice of bundling several different products together and selling them at a single "bundle" price






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






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






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






14. Demand line is above ATC curve






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






16. 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"






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






18. The price that is low enough to deter entry






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






21. 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)






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






23. Revenue-Costs






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






25. 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






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






27. Toothpaste - shampoo - restaurants - banks






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






29. Game in which each player makes decisions without knowledge of the other player's decisions






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






31. 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






32. Produce differentiated products. Make a profit or take a lost in the short run - in the long run the firm will break even. (MOST number of firms.)






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






34. 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






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






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






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






38. Single seller in an industry - Strong barriers to entry - Profit maximization - faces market demand and sets MR=MC - Unexploited gains from trade






39. 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






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






41. Involves price-fixing






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






43. Both players have dominant strategies and play them






44. The smallest quantity at which the average cost curve reaches its minimum






45. 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






46. When an upstream divisions leverages "monopoly like" power to charge higher marginal cost to a downstream division - resulting in failure of the firm to optimize profits based on the wrong quantity decision at the firms level






47. Occurs when a firm produces output - whatever its level - at a higher cost than is necessary to produce it






48. 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






49. Many buyers and sellers - product homogeneity - low cost and accurate information - free entry and exit - best regarded as a benchmark






50. When managers are able to charge each consumer their reservation price. Examples are car and home sales







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Can you answer 50 questions in 15 minutes?


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