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. Maximize economic profit by producing the quantity at which MC=MR






2. Multiple firms produce similar products - Firms face downward sloping demand curves - Profit maximization occurs where MC=MR - With free entry and exit - firms compete away economic profits






3. 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






4. 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






5. An establishment firm commits to setting price below the profit-maximizing level to prevent entry






6. 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






7. The situation that exists when two or more groups need each other and must depend on each other to accomplish a goal that is important to each of them






8. 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






9. 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)






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






11. Pricing strategy in which identical products are packaged together in order to enhance profits by forcing customers to make an all-or-none decision to purchase






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






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






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






15. The derivative of total revenue






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






17. If production of a good requires a particular input - then control of that input can be a barrier to entry






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






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






20. A representation of a game indicating the players - their possible strategies - and the payoffs resulting from alternative strategies






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






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






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






24. Price Sensitive






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






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






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






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






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






30. 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)






31. Competition based on factors that are not related to price - such as product quality - service and financing - business location - and reputation






32. 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

Warning: Invalid argument supplied for foreach() in /var/www/html/basicversity.com/show_quiz.php on line 183


33. 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






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






35. Marginal cost curve above average variable cost - P* = SRMC






36. 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






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






38. Rules - strategies - payoffs - outcomes






39. A merger between firms who have a buyer/supplier relationship. Example: BF Goodrich merging with rubber plantations






40. 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






41. A pricing strategy in which profits gained from the sale of one product are used to subsidize sales of a related product






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






43. 2 firms - simplest case in an oligopoly. Profits higher if limiting their production






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






45. When a manager makes a noncooperative decision






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






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






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






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






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







Sorry!:) No result found.

Can you answer 50 questions in 15 minutes?


Let me suggest you:

Browse all subjects

Browse all tests

Most popular tests



Major Subjects

Tests & Exams


AP
CLEP
DSST
GRE
SAT
GMAT

Browse all subjects

Browse all tests

Most popular tests