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






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






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






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






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






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






7. Rules - strategies - payoffs - outcomes






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






9. Single seller in an industry - Strong barriers to entry - Profit maximization - faces market demand and sets MR=MC - Unexploited gains from trade






10. 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.)






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






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






13. 1/(1+i)n






14. Identical or substitutable






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






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






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






18. 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






19. 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






20. 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






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






22. Maximize economic profit by producing the quantity at which MC=MR






23. The price that is low enough to deter entry






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






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






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






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






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






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






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






31. Both players have dominant strategies and play them






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






33. 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






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






35. Simultaneous move game that is not repeated






36. Single firm is sole producer of a product for which there are no close substitutes






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






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






39. Takes Place inside the Mind of the consumer






40. Produce identical products






41. 2 firms - simplest case in an oligopoly. Profits higher if limiting their production






42. 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






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






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






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






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






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






48. Pricing strategy in which higher prices are charged during peak hours than during off-peak hours






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






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







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Can you answer 50 questions in 15 minutes?


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