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






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. Nash equilibrium - the result when each player in a game chooses the action that maximizes his or her payoff given the actions of other players - ignoring the effects of his or her action on the payoffs received by those players (when you confess w






4. 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






5. 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






6. 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






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






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






9. 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






10. 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






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






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






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






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






15. Single firm is sole producer of a product for which there are no close substitutes






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






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






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






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. Price Sensitive






21. Rules - strategies - payoffs - outcomes






22. Operates like the alleged Mafia. Region division of the market among the firms in the industry






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






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






25. Multiple firms produce similar products - Firms face downward sloping demand curves - Profit maximization occurs where MC=MR - With free entry and exit - firms compete away economic profits






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






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






28. Keeps the price just where it is to maximize profit






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






30. Takes Place inside the Mind of the consumer






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






32. Involves price-fixing






33. 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






34. Each seller can sell all he wants to sell at the going price - Buyers and sellers are price takers - The goods offered by the different sellers are largely the same - The actions of any single buyer or seller will have a negligible impact on the m






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






36. A business arrangement in which two or more firms undertake a specific economic activity together. Once the activity is over - the firms go their own way






37. 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






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






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






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






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






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






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






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






45. 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






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






47. 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






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






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






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