SUBJECTS
|
BROWSE
|
CAREER CENTER
|
POPULAR
|
JOIN
|
LOGIN
Business Skills
|
Soft Skills
|
Basic Literacy
|
Certifications
About
|
Help
|
Privacy
|
Terms
|
Email
Search
Test your basic knowledge |
Business Competition
Start Test
Study First
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. 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
Double marginalization
Examples of Monopolistic Competition
Oligopoly
Four-firm concentration ratio
2. Using advertising and other means to try to increase a firm's sales
Nonprime competition
Strategic behavior
What is game?
Non-price competition
3. Occurs when a firm produces output - whatever its level - at a higher cost than is necessary to produce it
Bargaining Power of Buyers
Cross-subsidy pricing
Cheating
Inefficiency
4. All firms and individuals willing and able to buy or sell a particular product
Examples of Oligopoly
Market
Non-rivalrous consumption
Secure strategy
5. An industry where (1) there are few firms serving many customers; (2) firms produce differentiated products; (3) each firm believes rivals will respond to price reductions but will not follow price increases; and (4) barriers to entry exist
Vertical Merger
Sequential game
Sweezy oligopoly
Common knowledge
6. Pricing strategy in which a firm intentionally varies its price in an attempt to "hide" price information from consumers and rivals
Cutthroat Competition
Oligopoly
Dominant strategy equilibrium
Randomized pricing
7. The competition that domestic firms encounter from the products and services of foreign producers
Monopoly (characteristics)
Follower
Cross-subsidy pricing
Import competition
8. A merger of firms in unrelated industries. Example: If Purina Dow Chow merged with Pampers Diaper Company
Network effects
Contestable market
Conglomerate Merger
Empty threat
9. 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"
Credible threat
Cutthroat Competition
Lerner index
Interdependence
10. Demand line is above ATC curve
Perfect Competitor Making a Profit
Dominant firm oligopoly
Finding profit for oligopoly games
Payoff table
11. Involves price-fixing
No cooperative equilibrium
Non-rivalrous consumption
Covert Collusion
Brand Multiplication
12. When the decisions of two or more firms significantly affect each others' profits
Four-firm concentration ratio
Interdependence
Socially optimal price
Normal-form game
13. Increases in the value of a product to each user - including existing users - as the total number of users rises
Extensive-form game
Cournot oligopoly
Network effects
Stackelberg oligopoly
14. Physical differences - Convenience - Ambience - Reputations - Appeals to vanity - Unconscious fears and desires - Snob appeal - Customized products
Stackelberg oligopoly
Payoff matrix
Basis for Product Differentiation
Cooperation
15. Long-run marginal cost curve above long-run average cost
Perfect Competition Long Run Supply
Imperfect competition
Basis for Product Differentiation
What is game?
16. 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
Profit
The Threat from Potential Entrants Firms
Simultaneous decision games
Lerner index
17. 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)
Payoff matrix
Leader
Stackelberg oligopoly
Price Leadership
18. Where a firm can charge different groups of consumers different prices for the same product. Example: student or senior discounts
Non-rivalrous consumption
Third-degree price discrimination
Pure monopoly
Leader
19. The practice of charging different prices to consumers for the same good or service
Third-degree price discrimination
Product differentiation
Socially optimal price
Price discrimination
20. Rules - strategies - payoffs - outcomes
What is game?
High Price Elasticity
Nonprime competition
Two-part Tariff Method of Pricing
21. 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
Rothschild index
Simultaneous decision games
Cooperation
Socially optimal price
22. A pricing strategy in which profits gained from the sale of one product are used to subsidize sales of a related product
Collusion
Maximizing profit in Oligopoly games
Import competition
Cross-subsidy pricing
23. The practice of bundling several different products together and selling them at a single "bundle" price
Commodity bundling
Perfect Competitor Characteristics
Dominant firm oligopoly
Homogenous oligopoly
24. 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
Monopolistic Characteristics:
Double marginalization
Business strategy
Socially optimal price
25. A trigger strategy that punishes after an episode of cheating and returns to cooperation if cheating ends
Examples of Oligopoly
Tit-for-tat strategy
Finding profit for oligopoly games
Four-firm concentration ratio
26. Pricing strategy in which a firm optimally sets the internal price at which an upstream division wells an input to a downstream division
First-Degree Price Discrimination (Perfect)
Transfer pricing
Monopolistic Competition
Inter-industry competition
27. A strategy or action that always provides the best outcome no matter what decisions rivals make
Leader
Dominant strategy
Finding profit for oligopoly games
Non-cooperative behavior
28. Industry in which (1) few firms serving many customers; (2) firms produce identical products t constant marginal cost; (3) firms compete in price and react optimally to competitor's prices; (4) consumers have perfect information and here are no trans
Bargaining Power of Suppliers
Limit pricing
Equilibrium
Bertrand oligopoly
29. A product's ability to satisfy a large number of consumers at the same time
Simultaneous consumption
Randomized pricing
Socially optimal price
Payoff matrix
30. Game in which each player makes decisions without knowledge of the other player's decisions
Sequential-move game
Simultaneous-move game
Transfer pricing
Maximizing profit in Oligopoly games
31. Actions taken by firms to plan for and react to competition from rival firms
Interdependence
Two-part Tariff Method of Pricing
Strategic behavior
Prisoners' dilemma
32. Ranks industries according to how much social welfare would improve if the output in an industry were increased by a small amount
Block pricing
Network effects
Dansby-Willig performance index
Dominant strategy equilibrium
33. A situation where one firm is able to provide a service at a lower cost than could several competing firms
Natural Monopoly (local phone or electric company)
Block pricing
Fair return price
Credible threat
34. Many buyers and sellers - product homogeneity - low cost and accurate information - free entry and exit - best regarded as a benchmark
Market Structure
Mutual interdependence
Perfect Competition (characteristics)
Examples of Monopolistic Competition
35. A merger between firms who have a buyer/supplier relationship. Example: BF Goodrich merging with rubber plantations
Two-part pricing
Common knowledge
Extensive-form game
Vertical Merger
36. 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
Business strategy
Examples of Monopolistic Competition
Extensive-form game
Third-degree price discrimination
37. A table that shows the payoffs that each firm earns from every combination of strategies by the firms
Third-Degree Price Discrimination
Prisoners' dilemma
Differentiated oligopoly
Payoff matrix
38. Produce identical products
Third-Degree Price Discrimination
Dansby-Willig performance index
Perfect Competitor Characteristics
Third-degree price discrimination
39. Face competition from companies that currently are not in the market but might enter
Market
Limit pricing
Marginal Revenue
The Threat from Potential Entrants Firms
40. A game that is played over and over again forever and in which players receive payoffs during each play of the game
Examples of Oligopoly
Sweezy oligopoly
Price discrimination
Indefinitely repeated game
41. Ignoring the effects of their actions on each others' profits
Non-cooperative behavior
Bargaining Power of Suppliers
Dominant firm oligopoly
Mutual Interdependence
42. Actions taken by a firm to achieve a goal - such as maximizing profits
Business strategy
Strategy
First-Degree Price Discrimination (Perfect)
Ownership of a Key Input
43. The exclusive right to a product for a period of 20 years from the date the product is invented
Secure strategy
Cheating
Patent
Marginal Revenue
44. A situation in which neither firm has incentive to change its output given the other firm's output
Cournot equilibrium
Inefficiency
Strategic behavior
Product differentiation
45. An agreement among firms in a market about quantities to produce or prices to charge in attempts to limit competition
Collusion
Dominant firm oligopoly
Non-cooperative behavior
Perfect Competition Long Run Supply
46. 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
47. The maximum price that a buyer is willing to pay for a good - or the minimum price that a seller will accept
Oligopoly
Reservation Price
Dominant strategy
Unbalanced Oligopoly
48. A strategy that guarantees the highest payoff given the worst possible scenario
Secure strategy
Simultaneous-move game
Market Structure
Equilibrium
49. Rival who sets its output after the leader (Stackelberg's model)
Follower
Strategy
Non-rivalrous consumption
Sequential-move game
50. A representation of a game indicating the players - their possible strategies - and the payoffs resulting from alternative strategies
Normal-form game
Examples of Monopolistic Competition
Kinked demand curve model
Marginal Revenue