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. 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






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






3. Occurs when a firm produces output - whatever its level - at a higher cost than is necessary to produce it






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






5. 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






6. Pricing strategy in which a firm intentionally varies its price in an attempt to "hide" price information from consumers and rivals






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






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






9. 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"






10. Demand line is above ATC curve






11. Involves price-fixing






12. When the decisions of two or more firms significantly affect each others' profits






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






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






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






16. 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






17. 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)






18. Where a firm can charge different groups of consumers different prices for the same product. Example: student or senior discounts






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






20. Rules - strategies - payoffs - outcomes






21. 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






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






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






24. 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






25. A trigger strategy that punishes after an episode of cheating and returns to cooperation if cheating ends






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






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






28. Industry in which (1) few firms serving many customers; (2) firms produce identical products t constant marginal cost; (3) firms compete in price and react optimally to competitor's prices; (4) consumers have perfect information and here are no trans






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






30. Game in which each player makes decisions without knowledge of the other player's decisions






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






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






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






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






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






36. 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






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






38. Produce identical products






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






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






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






42. Actions taken by a firm to achieve a goal - such as maximizing profits






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






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






45. An agreement among firms in a market about quantities to produce or prices to charge in attempts to limit competition






46. 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


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






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






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






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