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






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






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






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






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






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






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






8. 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






9. Increases in the value of a product to each user - including existing users - as the total number of users rises






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






11. 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






12. 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






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






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






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






16. Demand line is above ATC curve






17. Competition based on factors that are not related to price - such as product quality - service and financing - business location - and reputation






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






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






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






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






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






23. Identical or substitutable






24. Physical differences - Convenience - Ambience - Reputations - Appeals to vanity - Unconscious fears and desires - Snob appeal - Customized products






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






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






27. The price that is low enough to deter entry






28. 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






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






30. 1/(1+i)n






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






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






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






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


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






36. First firm to set its output (Stackelberg's model)






37. 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






38. 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






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






40. 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






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






42. Rules - strategies - payoffs - outcomes






43. Simultaneous move game that is not repeated






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






45. 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)






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






47. 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






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






49. 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






50. Price Sensitive