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 exclusive right to a product for a period of 20 years from the date the product is invented






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






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






4. 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"






5. A strategy that is contingent on the past play of a game and ion which some particular past action "triggers" a different action by a player






6. The competition for sales between the products of one industry and the products of another industry






7. 1/(1+i)n






8. 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






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






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






11. Using advertising and other means to try to increase a firm's sales






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






13. The derivative of total revenue






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






15. 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






16. A firm whose price decisions are tacitly accepted and followed by others in the industry






17. 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






18. Involves price-fixing






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






20. A situation in which competing firms must make their individual decisions without knowing the decisions of their rivals






21. Price Sensitive






22. Revenue-Costs






23. 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






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






25. Industry where (1) there are few firms serving many customers; (2) firms produce either differentiated or homogenous products; (3) each form believes rivals will hold their output constant if it changes its output; and (4) barriers to entry exist. Fi






26. 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






27. 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






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






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






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






31. A market in which: (1) all have access to the same technology; (2) consumers respond quickly to price changes; (3) existing firms cannot respond quickly to entry by lowering their prices; and (4) there are no sunk costs






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






33. 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






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






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






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






37. Produce identical products






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






39. In game theory - a game that is played again sometime after the previous game ends






40. 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






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






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






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






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






45. 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)






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






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






48. A merger between two firms in the same industry. Example: 2004 K-Mart merged with Sears






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






50. A product's ability to satisfy a large number of consumers at the same time