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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. In game theory - a statement of harmful intent easily dismissed by recipient because threat not considered believable






2. 1/(1+i)n






3. Steel - autos - colas - airlines






4. 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






5. Takes Place inside the Mind of the consumer






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






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






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






9. 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






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






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






12. Revenue-Costs






13. 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






14. 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


15. Face competition from companies that currently are not in the market but might enter






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






17. Price Sensitive






18. Many buyers and sellers - product homogeneity - low cost and accurate information - free entry and exit - best regarded as a benchmark






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






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






21. The demand curve for a non-collusive oligopolist - which is based on the assumption that rivals will match a price decrease and will ignore a price increase






22. Pricing strategy in which consumers are charged a fixed fee for the right to purchase a product - plus a per-unit charge for each unit purchased






23. 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






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






25. The price that is low enough to deter entry






26. Each firm believes that if it raises its price - its competitors will not follow - but if it lowers its price all of its competitors will follow; -a model in which firms in an oligopoly match price cuts by other firms - but do not match price hike






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






28. In game theory - game where parties make their moves in turn - one party making the first move followed by the other






29. Actions taken by firms to plan for and react to competition from rival firms






30. 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






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






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






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






34. 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






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






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






37. Simultaneous move game that is not repeated






38. 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






39. 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






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






41. 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






42. Demand line is above ATC curve






43. 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






44. If many firms can supply an input and the input is not specialized - the suppliers are unlikely to have the bargaining power to limit a firm's profits






45. Identical or substitutable






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






47. An oligopoly in which the firms produce a standardized product






48. When a manager makes a noncooperative decision






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






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