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






2. A measure of market power - the percentage of all sales that is accounted for by the four or eight largest firms in the market






3. Rules - strategies - payoffs - outcomes






4. Anything that keeps new firms from entering an industry in which firms are earning economic profits (e.g. Ownership of a Key Input - Capital - Patents - Economies of scale)






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






6. The price that is low enough to deter entry






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






8. 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






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






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






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






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






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






14. 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






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






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






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






18. A situation in which no one wants to change his or her behavior






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






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






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






22. A merger of firms in unrelated industries. Example: If Purina Dow Chow merged with Pampers Diaper Company






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






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






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






26. An oligopoly in which the firms produce a differentiated product






27. 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






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






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






30. 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)






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






32. Toothpaste - shampoo - restaurants - banks






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






34. 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






35. Both players have dominant strategies and play them






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






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






38. 1/(1+i)n






39. Competition based on factors that are not related to price - such as product quality - service and financing - business location - and reputation






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






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






42. Takes Place inside the Mind of the consumer






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






44. 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






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






46. 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






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






48. Single seller in an industry - Strong barriers to entry - Profit maximization - faces market demand and sets MR=MC - Unexploited gains from trade






49. 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.)






50. 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







Sorry!:) No result found.

Can you answer 50 questions in 15 minutes?


Let me suggest you:

Browse all subjects

Browse all tests

Most popular tests



Major Subjects

Tests & Exams


AP
CLEP
DSST
GRE
SAT
GMAT

Browse all subjects

Browse all tests

Most popular tests