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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 - a game that is played again sometime after the previous game ends






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






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






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






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






6. The maximum price that a buyer is willing to pay for a good - or the minimum price that a seller will accept






7. 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






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






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






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






11. Produce identical products






12. 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






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






14. A measure of the difference between price and marginal cost as a fraction of the product's price. L=(P-MC)/P - refactoring gives: P=MC(1/(1-L)) - which gives us the "1/(1-L)" markup factor






15. Simultaneous move game that is not repeated






16. 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






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






18. 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






19. The smallest quantity at which the average cost curve reaches its minimum






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






21. Steel - autos - colas - airlines






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






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






24. Increases in the value of a product to each user - including existing users - as the total number of users rises






25. 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






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






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






28. 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






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






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






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






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






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






34. Takes Place inside the Mind of the consumer






35. Ignoring the effects of their actions on each others' profits






36. 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






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






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






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






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






41. 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






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






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






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






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






46. 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






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






48. Revenue-Costs






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






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