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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. An attempt by a firm to convince buyers that its product is different from the products of other firms in the industry






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






3. 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






4. Identical or substitutable






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






6. Takes Place inside the Mind of the consumer






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






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






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






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






11. 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






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






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






14. When something can be consumed without reducing the benefits available for subsequent consumption; can be consumed without supporting rivalry between consumers






15. When no one firm has a monopoly - but producers nonetheless realize that they can affect market prices. Firms compete but possess market power






16. 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






17. Both players have dominant strategies and play them






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






19. Produce identical products






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






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






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






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






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






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






26. Revenue-Costs






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






28. 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






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






30. 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






31. The derivative of total revenue






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






33. 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






34. When a manager makes a noncooperative decision






35. Rules - strategies - payoffs - outcomes






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






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






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






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






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






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






42. The physical characteristics of the market within which firms interact






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






44. Cooperation among firms that does not involve an explicit agreement






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






46. A business arrangement in which two or more firms undertake a specific economic activity together. Once the activity is over - the firms go their own way






47. 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"






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






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






50. 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