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. When firms make decisions that make every firm better off than in a noncooperative Nash equilibrium






2. Produce identical products






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






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






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






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






7. In game theory - a decision rule that describes the actions a player will take at each decision point






8. The situation when a firm's long-run average costs fall as it increases output






9. 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






10. A table showing - for every possible combination of decisions players can make - the outcomes or "payoffs" for each of the players in each decision combination






11. A measure of market power - the percentage of all sales that is accounted for by the four or eight largest firms in the market






12. 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






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






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






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






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






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






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






19. 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






20. Demand line is above ATC curve






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






22. 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






23. Simultaneous move game that is not repeated






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






25. 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"






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






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






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






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






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






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






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






33. 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






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






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






36. Set marginal cost for the cartel equal to marginal revenue for the cartel; -cartel's marginal cost curve is the horizontal sum of the MC curves of the two firms; -Marginal revenue curve is like that of a monopoly






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






38. 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






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






40. When managers are able to charge each consumer their reservation price. Examples are car and home sales






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






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






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






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






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






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






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






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






49. 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


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