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






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






3. When a manager makes a noncooperative decision






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






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






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






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






8. 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






9. Takes Place inside the Mind of the consumer






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






11. The reward received by a player in a game - such as the profit earned by an oligopolist






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. The practice of charging different prices to consumers for the same good or service






14. Game in which one player makes a move after observing the other player's move






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






16. 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






17. 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






18. A situation where one firm is able to provide a service at a lower cost than could several competing firms






19. 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






20. A few firms produce most market output - Products may or may not be differentiated - Effective entry barriers protect firm profitability - Firm interdependence requires strategic thinking






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






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






23. 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






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






25. Steel - autos - colas - airlines






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






27. Demand line is above ATC curve






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






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






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






31. Rules - strategies - payoffs - outcomes






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






34. A merger between two firms in the same industry. Example: 2004 K-Mart merged with Sears






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






36. When an upstream divisions leverages "monopoly like" power to charge higher marginal cost to a downstream division - resulting in failure of the firm to optimize profits based on the wrong quantity decision at the firms level






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






38. Single seller in an industry - Strong barriers to entry - Profit maximization - faces market demand and sets MR=MC - Unexploited gains from trade






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






40. 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






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






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






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






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






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






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






47. 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






48. 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






49. The price that is low enough to deter entry






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