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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. Demand line is above ATC curve






2. A market in which: (1) all have access to the same technology; (2) consumers respond quickly to price changes; (3) existing firms cannot respond quickly to entry by lowering their prices; and (4) there are no sunk costs






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






4. When a manager makes a noncooperative decision






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






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






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






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






9. Each seller can sell all he wants to sell at the going price - Buyers and sellers are price takers - The goods offered by the different sellers are largely the same - The actions of any single buyer or seller will have a negligible impact on the m






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






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






12. Produce identical products






13. Identical or substitutable






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






15. 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






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






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






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






19. Both players have dominant strategies and play them






20. Toothpaste - shampoo - restaurants - banks






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






22. Specific assets - Economies of scale - Excess capacity - Reputation effects






23. Marginal cost curve above average variable cost - P* = SRMC






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






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






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






27. 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






28. 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.)






29. The actions by persons - firms - or unions to gain special benefits from government at taxpayer's or someone else's expense






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






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






32. 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






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






34. 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






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






36. 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






37. 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






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






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






40. An oligopoly in which the sales of the leading (top four) firms are distributed unevenly among them






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






42. 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






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






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






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. 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"






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






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






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






50. An equilibrium in a game in which players cooperate to increase their mutual payoff






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