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






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






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






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






5. Rules - strategies - payoffs - outcomes






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






7. 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)






8. Both players have dominant strategies and play them






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






10. 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






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






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






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






14. Revenue-Costs






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






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






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






18. 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






19. Sets the price at the highest level that is consistent with keeping the potential entrant out. -The strategy of reducing the price to deter entry






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






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






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






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






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






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






26. Multiple firms make the same pricing decisions even though they have not explicitly consulted with each other






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






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






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






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






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






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






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






34. 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






35. The price that is low enough to deter entry






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






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






38. 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






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






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






41. 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






42. 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






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






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






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






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






47. 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






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






49. Involves price-fixing






50. 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