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






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






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






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






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






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






7. 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


8. 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






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






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






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






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






13. In game theory - a statement of harmful intent by one party that the other party views as believable-- "if you do this - we will do that"






14. Steel - autos - colas - airlines






15. 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






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






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






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






19. A strategy whereby a player randomizes over two or more available actions in order to keep rivals from being able to predict his action






20. Involves price-fixing






21. 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






22. 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






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






24. 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

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


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






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






27. Different units of a product are sold at different prices. Examples are buying in bulk - or - commodity-bundling






28. Takes Place inside the Mind of the consumer






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






30. 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






31. 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






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






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






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






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






36. 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






37. Price Sensitive






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






39. A strategy that guarantees the highest payoff given the worst possible scenario






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






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






42. 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






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






44. 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






45. 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)






46. Demand line is above ATC curve






47. 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






48. The price that is low enough to deter entry






49. 1/(1+i)n






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






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