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






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






3. Both players have dominant strategies and play them






4. Demand line is above ATC curve






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






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






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






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






9. Steel - autos - colas - airlines






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






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






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






13. 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






14. Rules - strategies - payoffs - outcomes






15. 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






16. 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






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






18. Simultaneous move game that is not repeated






19. A product's ability to satisfy a large number of consumers at the same time






20. 1/(1+i)n






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






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






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






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






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






26. Multiple firms produce similar products - Firms face downward sloping demand curves - Profit maximization occurs where MC=MR - With free entry and exit - firms compete away economic profits






27. When an upstream divisions leverages "monopoly like" power to charge higher marginal cost to a downstream division - resulting in failure of the firm to optimize profits based on the wrong quantity decision at the firms level






28. Revenue-Costs






29. 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






30. 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






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






32. 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






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






34. Takes Place inside the Mind of the consumer






35. A situation in which competing firms must make their individual decisions without knowing the decisions of their rivals






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






37. 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)






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






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






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






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






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






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






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






45. Price Sensitive






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






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






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






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






50. 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