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






2. 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






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






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






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






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






7. 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






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






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






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






11. 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






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






13. 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






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






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






16. 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






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






18. A merger between two firms in the same industry. Example: 2004 K-Mart merged with Sears






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






20. 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






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






22. 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






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






24. A situation in which no one wants to change his or her behavior






25. Price of a product that enables its producer to obtain a normal profit & that is equal to the ATC of producing it






26. A strategy in which a firm advertises a price and a promise to match any lower prices offered by a competitor






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






28. 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






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






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






31. 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






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






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






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






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






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






37. In game theory - a game that is played again sometime after the previous game ends






38. A table that shows the payoffs for every possible action by each player for every possible action by the other player






39. A situation in which all decision makers know the payoff table - and they believe all other decision makers also know the payoff table






40. 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






41. 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.)






42. 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)






43. Simultaneous move game that is not repeated






44. Both players have dominant strategies and play them






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






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






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






48. 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






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






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