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






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






3. 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






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






5. An equilibrium in a game in which players do not cooperate but pursue their own self-interest






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






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






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






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






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






11. Identical or substitutable






12. Demand line is above ATC curve






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






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






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






16. 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)






17. Involves price-fixing






18. A representation of a game that summarizes the players - the information available to them at each stage - the strategies available to them - the sequence of moves - and the payoffs resulting from alternative strategies






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. Steel - autos - colas - airlines






21. 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

Warning: Invalid argument supplied for foreach() in /var/www/html/basicversity.com/show_quiz.php on line 183


22. In game theory - a statement of harmful intent by one party that the other party views as believable-- "if you do this - we will do that"






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






24. Multiple firms produce similar products - Firms face downward sloping demand curves - Profit maximization occurs where MC=MR - With free entry and exit - firms compete away economic profits






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






26. Toothpaste - shampoo - restaurants - banks






27. 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






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






29. 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






30. Marginal cost curve above average variable cost - P* = SRMC






31. 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






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






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






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






35. A table showing - for every possible combination of decisions players can make - the outcomes or "payoffs" for each of the players in each decision combination






36. 1/(1+i)n






37. Price of a product that enables its producer to obtain a normal profit & that is equal to the ATC of producing it






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






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






40. Rules - strategies - payoffs - outcomes






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






42. Takes Place inside the Mind of the consumer






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






44. Both players have dominant strategies and play them






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






46. The players end up worse off than they would if they were able to cooperate; -the pursuit of self-interest does not promote the social interest in these games






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






48. The situation when a firm's long-run average costs fall as it increases output






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






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