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. Demand line is above ATC curve






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






3. 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






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






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






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






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






8. Takes Place inside the Mind of the consumer






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






10. Toothpaste - shampoo - restaurants - banks






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






12. Rules - strategies - payoffs - outcomes






13. The demand curve for a non-collusive oligopolist - which is based on the assumption that rivals will match a price decrease and will ignore a price increase






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






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






16. The physical characteristics of the market within which firms interact






17. 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






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






19. The percentage of the total industry sales accounted for by the four largest firms in the industry. OUTPUT of 4 largest firms over TOTAL output in industry. C4=(S1+...+S4)/St or (w1+...+w4)






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






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






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






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






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






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






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






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






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






29. In game theory - benefit obtained by party that moves first in a sequential game






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






31. 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






32. 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"






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






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






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






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






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






38. 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






39. 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






40. 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






41. 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






42. 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






43. Industry in which (1) there are few firms serving many customers; (2) firms produce either differentiated or homogenous products; (3) a single (leader) firm chooses an output quantity before their rivals select their outputs; (4) all other (follower)






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






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






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






47. 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






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






49. Simultaneous move game that is not repeated






50. 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