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. 1/(1+i)n






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






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






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






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






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






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






8. 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






9. 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






10. The situation that exists when two or more groups need each other and must depend on each other to accomplish a goal that is important to each of them






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






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






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






14. Game in which each player makes decisions without knowledge of the other player's decisions






15. 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






16. 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






17. 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






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






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






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






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






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






23. Simultaneous move game that is not repeated






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






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






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






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






28. Identical or substitutable






29. 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

Warning: Invalid argument supplied for foreach() in /var/www/html/basicversity.com/show_quiz.php on line 183


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






31. 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






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






33. 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)






34. 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






35. When the decisions of two or more firms significantly affect each others' profits






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






37. Revenue-Costs






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






39. Takes Place inside the Mind of the consumer






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






41. 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.)






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






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






44. 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






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






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






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






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






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






50. 2 firms - simplest case in an oligopoly. Profits higher if limiting their production