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






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






3. A situation in which all decision makers know the payoff table - and they believe all other decision makers also know the payoff table






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






5. When a manager makes a noncooperative decision






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






7. 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






8. Price Sensitive






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






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






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






12. 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






13. First firm to set its output (Stackelberg's model)






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






15. 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






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






17. 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






18. The derivative of total revenue






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






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






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






22. 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)






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






24. 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"






25. 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






26. Demand line is above ATC curve






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






28. An oligopoly in which the firms produce a standardized product






29. 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






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






31. Steel - autos - colas - airlines






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






33. Revenue-Costs






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






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






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






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






39. 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






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






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






42. Both players have dominant strategies and play them






43. Single firm is sole producer of a product for which there are no close substitutes






44. 1/(1+i)n






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






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






47. Takes Place inside the Mind of the consumer






48. 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






49. A combination of two or more companies into one company






50. Each firm believes that if it raises its price - its competitors will not follow - but if it lowers its price all of its competitors will follow; -a model in which firms in an oligopoly match price cuts by other firms - but do not match price hike