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. Face competition from companies that currently are not in the market but might enter
Perfect Competition (characteristics)
Prisoners' dilemma
The Threat from Potential Entrants Firms
Implicit Collusion
2. Produce identical products
Perfect Competitor Characteristics
Homogenous oligopoly
Implicit Collusion
Concentration Ratio
3. Competition based on factors that are not related to price - such as product quality - service and financing - business location - and reputation
Nonprime competition
Implicit Collusion
Sweezy oligopoly
Concentration Ratio
4. 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
Third-degree price discrimination
Nonprime competition
Dominant firm oligopoly
Secure strategy
5. 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
Joint Venture
Herfindahl-Hirschman index (HHI)
Cournot equilibrium
Disappearing invisible hand
6. Actions taken by firms to plan for and react to competition from rival firms
Strategy
Mutual interdependence
Strategic behavior
Two-part pricing
7. A strategy or action that always provides the best outcome no matter what decisions rivals make
First-mover advantage
Dominant strategy
Concentration Ratio
Interdependence
8. An oligopoly in which the firms produce a differentiated product
Sequential-move game
Simultaneous decision games
Differentiated oligopoly
Examples of Monopolistic Competition
9. 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
10. Pricing strategy in which higher prices are charged during peak hours than during off-peak hours
Payoff matrix
Profit
Fair return price
Peak-load pricing
11. The physical characteristics of the market within which firms interact
Price matching
Joint Venture
Perfect Competition Long Run Supply
Market Structure
12. Ranks industries according to how much social welfare would improve if the output in an industry were increased by a small amount
Dansby-Willig performance index
First-Degree Price Discrimination (Perfect)
Price war
Market
13. Where a firm can charge different groups of consumers different prices for the same product. Example: student or senior discounts
Third-degree price discrimination
Monopolistic Competition
Cooperative equilibrium
Indefinitely repeated game
14. 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
Merger
Common knowledge
Dominant firm oligopoly
Competitive market
15. 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)
Price Leadership
Transfer pricing
Price discrimination
Stackelberg oligopoly
16. A measure of market power - the percentage of all sales that is accounted for by the four or eight largest firms in the market
Product Differentiation
Concentration Ratio
Indefinitely repeated game
Examples of Monopolistic Competition
17. A strategy whereby a player randomizes over two or more available actions in order to keep rivals from being able to predict his action
Mixed (randomized) strategy
Concentration Ratio
Stackelberg oligopoly
Monopolistic Competition
18. Revenue-Costs
Subgame perfect equilibrium
Pure monopoly
Market
Profit
19. Both players have dominant strategies and play them
Cournot oligopoly
Bertrand oligopoly
Dominant strategy equilibrium
Homogenous oligopoly
20. 2 firms - simplest case in an oligopoly. Profits higher if limiting their production
Interdependence
Monopoly (characteristics)
Duopoly
Perfect Competitor Making a Profit
21. Rules - strategies - payoffs - outcomes
Imperfect competition
Repeated game
What is game?
Covert Collusion
22. A trigger strategy that punishes after an episode of cheating and returns to cooperation if cheating ends
Tit-for-tat strategy
Minimum efficient scale (full capacity)
Credible threat
Disappearing invisible hand
23. Involves price-fixing
Covert Collusion
Examples of Oligopoly
Prisoners' dilemma
Monopolistic Competition
24. Intense competition in which competitors cut retail prices to gain business--oligopolistic competition
Four-firm concentration ratio
Economies of scale
Randomized pricing
Price war
25. Many buyers and sellers - product homogeneity - low cost and accurate information - free entry and exit - best regarded as a benchmark
Four-firm concentration ratio
Sweezy oligopoly
Perfect Competition (characteristics)
Cournot equilibrium
26. Using advertising and other means to try to increase a firm's sales
Tacit collusion
Price discrimination
Non-price competition
Limit pricing
27. Different units of a product are sold at different prices. Examples are buying in bulk - or - commodity-bundling
High Price Elasticity
Second-Degree Price Discrimination
Profit
Non-price competition
28. 1/(1+i)n
Tacit collusion
Economies of scale
Present Value (PV)
Maximizing profit in Oligopoly games
29. Increases in the value of a product to each user - including existing users - as the total number of users rises
Nash equilibrium
Two-part Tariff Method of Pricing
Network effects
Monopolistic Characteristics:
30. Maximize economic profit by producing the quantity at which MC=MR
Maximizing profit in Oligopoly games
Prisoner's dilemma
Lerner index
Perfect Competitor Making a Profit
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
Barrier to entry
Contestable market
Product Differentiation
Competitive market
32. When firms make decisions that make every firm better off than in a noncooperative Nash equilibrium
Present Value (PV)
Cooperation
Mixed (randomized) strategy
Socially optimal price
33. 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
Normal-form game
Product differentiation
Credible threat
Finding profit for oligopoly games
34. A situation in which no one wants to change his or her behavior
Equilibrium
Contestable market
The Threat from Potential Entrants Firms
Block pricing
35. The practice of bundling several different products together and selling them at a single "bundle" price
Undifferentiated
Profit
High Price Elasticity
Commodity bundling
36. A game that is played over and over again forever and in which players receive payoffs during each play of the game
Examples of Monopolistic Competition
Monopoly (characteristics)
High Price Elasticity
Indefinitely repeated game
37. A situation in which competing firms must make their individual decisions without knowing the decisions of their rivals
Cooperation
Simultaneous decision games
Simultaneous-move game
Barrier to entry
38. In game theory - a game that is played again sometime after the previous game ends
Monopolistic Competition
Open Collusion
Repeated game
Sequential game
39. Ignoring the effects of their actions on each others' profits
Stackelberg oligopoly
Non-cooperative behavior
Prisoners' dilemma
Present Value (PV)
40. A merger of firms in unrelated industries. Example: If Purina Dow Chow merged with Pampers Diaper Company
Conglomerate Merger
Randomized pricing
Equilibrium
Perfect Competition Short Run Supply
41. Rival who sets its output after the leader (Stackelberg's model)
Homogenous oligopoly
Network effects
Mixed (randomized) strategy
Follower
42. Takes Place inside the Mind of the consumer
Stackelberg oligopoly
Inefficiency
Product Differentiation
Payoff matrix
43. Game in which each player makes decisions without knowledge of the other player's decisions
Kinked demand curve model
Price war
Simultaneous-move game
Perfect Competition (characteristics)
44. A situation in which neither firm has incentive to change its output given the other firm's output
Herfindahl-Hirschman index (HHI)
Ownership of a Key Input
Cournot equilibrium
Perfect Competition Short Run Supply
45. The exclusive right to a product for a period of 20 years from the date the product is invented
Patent
Payoff table
Non-cooperative equilibrium
Second-Degree Price Discrimination
46. The maximum price that a buyer is willing to pay for a good - or the minimum price that a seller will accept
Reservation Price
Four-firm concentration ratio
Sequential game
Patent
47. Long-run marginal cost curve above long-run average cost
Implicit Collusion
Primary Sources of Monopolistic Power
Perfect Competition Long Run Supply
Double marginalization
48. A merger between firms who have a buyer/supplier relationship. Example: BF Goodrich merging with rubber plantations
Conglomerate Merger
Randomized pricing
Vertical Merger
Market Structure
49. In game theory - benefit obtained by party that moves first in a sequential game
First-mover advantage
Dominant strategy equilibrium
Simultaneous decision games
Transfer pricing
50. 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
Sweezy oligopoly
Common knowledge
Empty threat
Strategy