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. An oligopoly in which the firms produce a differentiated product






2. Takes Place inside the Mind of the consumer






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






4. 1/(1+i)n






5. 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"






6. Simultaneous move game that is not repeated






7. 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






8. The derivative of total revenue






9. 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






10. 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






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






12. Pricing strategy in which a firm intentionally varies its price in an attempt to "hide" price information from consumers and rivals






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






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






15. 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






16. A merger between firms who have a buyer/supplier relationship. Example: BF Goodrich merging with rubber plantations






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






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






19. A situation in which neither firm has incentive to change its output given the other firm's output






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






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






22. 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






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






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






25. Intense competition in which competitors cut retail prices to gain business--oligopolistic competition






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






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






28. Both players have dominant strategies and play them






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






30. The practice of bundling several different products together and selling them at a single "bundle" price






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






32. When a manager makes a noncooperative decision






33. The price that is low enough to deter entry






34. 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






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






36. Price Sensitive






37. When firms limit production and raise prices in a way that raises each others' profits - even though they have not made any formal agreement






38. 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)






39. In game theory - a decision rule that describes the actions a player will take at each decision point






40. 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






41. 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






42. 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






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






44. 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)






45. 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






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






47. The rules describe the setting of the game - the actions the players may take - and the consequences of those actions; -Advertising and R&D are also prisoners' dilemmas

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


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






49. 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






50. Revenue-Costs