Test your basic knowledge |

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






3. 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






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






5. 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






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






7. Actions taken by a firm to achieve a goal - such as maximizing profits






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






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






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






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






12. When a manager makes a noncooperative decision






13. When each firm has an incentive to cheat - but both are worse off if both cheat -- illustrates why cooperation is difficult to maintain even when it is mutually beneficial to do so

Warning: Invalid argument supplied for foreach() in /var/www/html/basicversity.com/show_quiz.php on line 183


14. A trigger strategy that punishes after an episode of cheating and returns to cooperation if cheating ends






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






16. Steel - autos - colas - airlines






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






18. The derivative of total revenue






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






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






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






22. 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






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






24. Game in which one player makes a move after observing the other player's move






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






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






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






28. Toothpaste - shampoo - restaurants - banks






29. Both players have dominant strategies and play them






30. A table that shows the payoffs for every possible action by each player for every possible action by the other player






31. 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






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






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






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






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






36. An agreement among firms in a market about quantities to produce or prices to charge in attempts to limit competition






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






38. Rules - strategies - payoffs - outcomes






39. If production of a good requires a particular input - then control of that input can be a barrier to entry






40. 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






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






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






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






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






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






46. 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






47. 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






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. 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)






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