A Form of Implicit Collusion in Which One Firm Consistently

question 50

Multiple Choice

A form of implicit collusion in which one firm consistently follows the actions of another firm is:

• A) predatory pricing.
• B) a Webb-Pomerene association.
• C) parallel conduct.
• D) only illegal in Europe.

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Definitions:

Effective Control

The practical authority to direct and manage operations, assets, or investments, often regardless of ownership percentages, ensuring the achievement of strategic objectives.

Widely Held Company

A corporation whose ownership is distributed over a large number of people with no single individual or group having a significant proportion.

Stockholders

Owners of shares in a company and thus, hold equity interest, enjoying benefits like dividends and voting rights.

Return On Preferred Stock

The dividend paid on preferred stock divided by the price of the preferred stock, representing the earnings returned on investments in preferred shares.