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






2. Maximize economic profit by producing the quantity at which MC=MR






3. 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






4. 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






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






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






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






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






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






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






11. Long-run marginal cost curve above long-run average cost






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






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






14. When no one firm has a monopoly - but producers nonetheless realize that they can affect market prices. Firms compete but possess market power






15. Produce differentiated products. Make a profit or take a lost in the short run - in the long run the firm will break even. (MOST number of firms.)






16. 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






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






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






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






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






21. Takes Place inside the Mind of the consumer






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






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






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






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






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






27. 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






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






29. 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






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






31. 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






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






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






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






35. 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






36. Rules - strategies - payoffs - outcomes






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






38. 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






39. Industry in which (1) there are few firms serving many customers; (2) firms produce either differentiated or homogenous products; (3) a single (leader) firm chooses an output quantity before their rivals select their outputs; (4) all other (follower)






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






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






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






43. Involves price-fixing






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






45. A pricing strategy in which profits gained from the sale of one product are used to subsidize sales of a related product






46. 2 firms - simplest case in an oligopoly. Profits higher if limiting their production






47. 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






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






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






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