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






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






3. Produce identical products






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






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






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






7. Sets the price at the highest level that is consistent with keeping the potential entrant out. -The strategy of reducing the price to deter entry






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






9. Simultaneous move game that is not repeated






10. Price Sensitive






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






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






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






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






15. 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






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






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






18. Intense competition in which competitors cut retail prices to gain business--oligopolistic competition






19. 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






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






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. 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






23. Revenue-Costs






24. Toothpaste - shampoo - restaurants - banks






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






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






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






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






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. 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






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






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






33. 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






34. A firm whose price decisions are tacitly accepted and followed by others in the industry






35. The competition for sales between the products of one industry and the products of another industry






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






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






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






39. 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"






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






41. The smallest quantity at which the average cost curve reaches its minimum






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






43. 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






44. 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






45. 2 firms - simplest case in an oligopoly. Profits higher if limiting their production






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






47. Rules - strategies - payoffs - outcomes






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






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

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