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






2. One large firm that has a significant cost advantage over many other - smaller competing firms; -the large firm operates as a monopoly: setting price and output to maximize profit; -the small firms act as perfect competitors: taking as given the mar






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






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






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






6. The actions by persons - firms - or unions to gain special benefits from government at taxpayer's or someone else's expense






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






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






9. Revenue-Costs






10. 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






11. 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






12. In game theory - a decision rule that describes the actions a player will take at each decision point






13. 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






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






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






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






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






18. 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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19. Actions taken by firms to plan for and react to competition from rival firms






20. 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






21. 2 firms - simplest case in an oligopoly. Profits higher if limiting their production






22. The situation when a firm's long-run average costs fall as it increases output






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






24. All firms and individuals willing and able to buy or sell a particular product






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






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






27. 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






28. A simpler way to operationalize first-degree price discrimination






29. Produce identical products






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






31. Different units of a product are sold at different prices. Examples are buying in bulk - or - commodity-bundling






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






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






34. 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

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35. 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






36. 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






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






38. Steel - autos - colas - airlines






39. 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






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






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






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






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






44. 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






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






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






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






48. Both players have dominant strategies and play them






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






50. Intense competition in which competitors cut retail prices to gain business--oligopolistic competition