SUBJECTS
|
BROWSE
|
CAREER CENTER
|
POPULAR
|
JOIN
|
LOGIN
Business Skills
|
Soft Skills
|
Basic Literacy
|
Certifications
About
|
Help
|
Privacy
|
Terms
|
Email
Search
Test your basic knowledge |
Business Competition
Start Test
Study First
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. Revenue-Costs
Unbalanced Oligopoly
Perfect Competitor Making a Profit
Inefficiency
Profit
2. Game in which each player makes decisions without knowledge of the other player's decisions
Commodity bundling
Simultaneous-move game
Dominant strategy equilibrium
Transfer pricing
3. 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)
Monopolistic Characteristics:
Brand Multiplication
Four-firm concentration ratio
Perfect Competitor Characteristics
4. If production of a good requires a particular input - then control of that input can be a barrier to entry
Product differentiation
Secure strategy
Tacit collusion
Ownership of a Key Input
5. A situation in which neither firm has incentive to change its output given the other firm's output
Prisoners' dilemma
Dansby-Willig performance index
Herfindahl-Hirschman index (HHI)
Cournot equilibrium
6. 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
Sequential game
Dominant firm oligopoly
Product Differentiation
Economies of scale
7. A situation in which no one wants to change his or her behavior
Non-rivalrous consumption
Perfect Competition (characteristics)
Equilibrium
Trigger strategy
8. Intense competition in which competitors cut retail prices to gain business--oligopolistic competition
Implicit Collusion
Price war
Price matching
Perfect Competitor Characteristics
9. An oligopoly in which the firms produce a differentiated product
Dansby-Willig performance index
Payoff matrix
Differentiated oligopoly
Cournot equilibrium
10. 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
Covert Collusion
Two-part pricing
First-Degree Price Discrimination (Perfect)
Sweezy oligopoly
11. The smallest quantity at which the average cost curve reaches its minimum
Economies of scale
Minimum efficient scale (full capacity)
Mixed (randomized) strategy
Third-degree price discrimination
12. A strategy that guarantees the highest payoff given the worst possible scenario
Economies of scale
Cross-subsidy pricing
Basis for Product Differentiation
Secure strategy
13. 1/(1+i)n
Present Value (PV)
Tit-for-tat strategy
Dominant firm oligopoly
Tacit collusion
14. 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
Socially optimal price
Finding profit for oligopoly games
Covert Collusion
Tacit collusion
15. An equilibrium in a game in which players do not cooperate but pursue their own self-interest
Merger
Cheating
Perfect Competition Barriers to Entry
No cooperative equilibrium
16. Where a firm can charge different groups of consumers different prices for the same product. Example: student or senior discounts
Third-degree price discrimination
Cutthroat Competition
Basis for Product Differentiation
Maximizing profit in Oligopoly games
17. Produce identical products
Market
Rothschild index
Bargaining Power of Buyers
Perfect Competitor Characteristics
18. Specific assets - Economies of scale - Excess capacity - Reputation effects
Interdependence
Inter-industry competition
Monopolistic Competition
Perfect Competition Barriers to Entry
19. Variations on one good so that a firm can increase market sharea
Socially optimal price
Brand Multiplication
Patent
Block pricing
20. The maximum price that a buyer is willing to pay for a good - or the minimum price that a seller will accept
Trigger strategy
Reservation Price
Follower
Leader
21. A measure of the sensitivity to price of a product group as a whole relative to the sensitivity of the quantity demanded of a single firm to a change in its price. R=Et/Ef
Rent-seeking behavior
Rothschild index
Vertical Merger
Perfect Competitor Characteristics
22. The reward received by a player in a game - such as the profit earned by an oligopolist
Concentration Ratio
Payoff
Four-firm concentration ratio
Price discrimination
23. Occurs when a firm produces output - whatever its level - at a higher cost than is necessary to produce it
Limit price
Inefficiency
Normal-form game
Non-price competition
24. First firm to set its output (Stackelberg's model)
Inter-industry competition
Inefficiency
Minimum efficient scale (full capacity)
Leader
25. 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
Bargaining Power of Suppliers
Maximizing profit in Oligopoly games
Non-cooperative equilibrium
Non-price competition
26. A combination of two or more companies into one company
Tit-for-tat strategy
Merger
Price war
Stackelberg oligopoly
27. Increases in the value of a product to each user - including existing users - as the total number of users rises
Maximizing profit in Oligopoly games
Extensive-form game
Network effects
Examples of Monopolistic Competition
28. When firms limit production and raise prices in a way that raises each others' profits - even though they have not made any formal agreement
Simultaneous-move game
Commodity bundling
High Price Elasticity
Tacit collusion
29. When managers are able to charge each consumer their reservation price. Examples are car and home sales
Homogenous oligopoly
Cross-subsidy pricing
Present Value (PV)
First-Degree Price Discrimination (Perfect)
30. Using advertising and other means to try to increase a firm's sales
Non-price competition
Normal-form game
Second-Degree Price Discrimination
Tit-for-tat strategy
31. Actions taken by firms to plan for and react to competition from rival firms
Profit
Homogenous oligopoly
Strategic behavior
Limit pricing
32. 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
Nash equilibrium
Cooperative equilibrium
Inefficiency
Herfindahl-Hirschman index (HHI)
33. Pricing strategy in which higher prices are charged during peak hours than during off-peak hours
Inter-industry competition
Peak-load pricing
Rent-seeking behavior
Mutual interdependence
34. Competition based on factors that are not related to price - such as product quality - service and financing - business location - and reputation
Business strategy
Fair return price
High Price Elasticity
Nonprime competition
35. A merger between two firms in the same industry. Example: 2004 K-Mart merged with Sears
Horizontal Merger/Integration
Equilibrium
Nonprime competition
Perfect Competition Short Run Supply
36. The competition for sales between the products of one industry and the products of another industry
Merger
Mutual Interdependence
Inter-industry competition
Price war
37. (1) Economies of Scale; (2) Economies of Scope; (3) Cost Complementarity; and (4)Patents & Other Legal Barriers
Leader
Minimum efficient scale (full capacity)
Primary Sources of Monopolistic Power
Secure strategy
38. Rival who sets its output after the leader (Stackelberg's model)
Cooperation
Follower
Homogenous oligopoly
Strategic behavior
39. A strategy or action that always provides the best outcome no matter what decisions rivals make
Perfect Competitor Characteristics
Perfect Competition Long Run Supply
Dominant strategy
Price discrimination
40. Demand line is above ATC curve
Bargaining Power of Suppliers
Perfect Competitor Making a Profit
Sequential game
Normal-form game
41. 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
Third-Degree Price Discrimination
Dominant strategy
Limit pricing
Kinked demand curve model
42. An index of market concentration. Sum of squared market shares of all the firms in the industry times 10K HHI=10 - 000Σwi2
Herfindahl-Hirschman index (HHI)
The Threat from Potential Entrants Firms
Simultaneous decision games
Third-degree price discrimination
43. If buyers have enough bargaining power - they can insist on lower prices - higher-quality products - or additional services
Dominant strategy equilibrium
Price war
Second-Degree Price Discrimination
Bargaining Power of Buyers
44. Different units of a product are sold at different prices. Examples are buying in bulk - or - commodity-bundling
Cournot oligopoly
Cross-subsidy pricing
Second-Degree Price Discrimination
Lerner index
45. Both players have dominant strategies and play them
Marginal Revenue
Vertical Merger
Dominant strategy equilibrium
Nash equilibrium
46. An oligopoly in which the firms produce a standardized product
Homogenous oligopoly
Secure strategy
Perfect Competitor Making a Profit
The Threat from Potential Entrants Firms
47. Involves price-fixing
Homogenous oligopoly
Common knowledge
Inefficiency
Covert Collusion
48. 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
Two-part pricing
Contestable market
Third-Degree Price Discrimination
Non-price competition
49. When no one firm has a monopoly - but producers nonetheless realize that they can affect market prices. Firms compete but possess market power
Bargaining Power of Buyers
Commodity bundling
Imperfect competition
Second-Degree Price Discrimination
50. When a manager makes a noncooperative decision
Network effects
Socially optimal price
Cooperation
Cheating