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






2. All firms and individuals willing and able to buy or sell a particular product






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






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






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






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






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






8. 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






9. 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"






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






11. Produce identical products






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






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






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






15. 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






16. Sellers can identify different types of customers and offer each a different price. Examples are special prices for students or the elderly






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






18. 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






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






20. A condition describing a set of strategies in which no player can improve their payoff by unilaterally changing their own strategy given the other player's strategy






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






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






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






24. 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






25. The derivative of total revenue






26. 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






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






28. Keeps the price just where it is to maximize profit






29. Anything that keeps new firms from entering an industry in which firms are earning economic profits (e.g. Ownership of a Key Input - Capital - Patents - Economies of scale)






30. 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






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






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






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






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






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






36. 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






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






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






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






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






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






42. A simpler way to operationalize first-degree price discrimination






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






44. 1/(1+i)n






45. Demand line is above ATC curve






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






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






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






49. A situation in which a change in price strategy by one firm affects sales and profits of another






50. An equilibrium in a game in which players do not cooperate but pursue their own self-interest






Can you answer 50 questions in 15 minutes?



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