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






2. Multiple firms make the same pricing decisions even though they have not explicitly consulted with each other






3. 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






4. Demand line is above ATC curve






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






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






7. 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)






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






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






10. 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






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






12. A measure of the sensitivity to price of a product group as a whole relative to the sensitivity of the quantity demanded of a single firm to a change in its price. R=Et/Ef






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






14. 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






15. 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






16. Revenue-Costs






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






18. Simultaneous move game that is not repeated






19. Steel - autos - colas - airlines






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






21. Produce identical products






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






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. 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






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






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






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






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






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






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






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






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






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






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






35. 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






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






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






38. Involves price-fixing






39. 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






40. An oligopoly in which the sales of the leading (top four) firms are distributed unevenly among them






41. 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






42. 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






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






44. The reward received by a player in a game - such as the profit earned by an oligopolist






45. Takes Place inside the Mind of the consumer






46. The derivative of total revenue






47. Increases in the value of a product to each user - including existing users - as the total number of users rises






48. Produce differentiated products. Make a profit or take a lost in the short run - in the long run the firm will break even. (MOST number of firms.)






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






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