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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. Simultaneous move game that is not repeated






2. 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






3. 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






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






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






6. Nash equilibrium - the result when each player in a game chooses the action that maximizes his or her payoff given the actions of other players - ignoring the effects of his or her action on the payoffs received by those players (when you confess w






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






8. Rival who sets its output after the leader (Stackelberg's model)






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






10. 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

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






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






13. Cooperation among firms that does not involve an explicit agreement






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






15. Pricing strategy in which a firm optimally sets the internal price at which an upstream division wells an input to a downstream division






16. 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)






17. A combination of two or more companies into one company






18. 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






19. 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






20. Pricing strategy in which higher prices are charged during peak hours than during off-peak hours






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






22. When firms limit production and raise prices in a way that raises each others' profits - even though they have not made any formal agreement






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






24. Physical differences - Convenience - Ambience - Reputations - Appeals to vanity - Unconscious fears and desires - Snob appeal - Customized products






25. Steel - autos - colas - airlines






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






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






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






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






30. Revenue-Costs






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






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






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






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






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






36. 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






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






38. The rules describe the setting of the game - the actions the players may take - and the consequences of those actions; -Advertising and R&D are also prisoners' dilemmas

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39. 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






40. An index of market concentration. Sum of squared market shares of all the firms in the industry times 10K HHI=10 - 000Σwi2






41. When a manager makes a noncooperative decision






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






43. The percentage of the total industry sales accounted for by the four largest firms in the industry. OUTPUT of 4 largest firms over TOTAL output in industry. C4=(S1+...+S4)/St or (w1+...+w4)






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






45. An equilibrium in a game in which players cooperate to increase their mutual payoff






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






47. 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






48. The actions by persons - firms - or unions to gain special benefits from government at taxpayer's or someone else's expense






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






50. 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