Which of the Following Is True Regarding Conscious Parallelism

question 29

Multiple Choice

Which of the following is true regarding conscious parallelism?

• A) Proof,standing alone,that firms changed prices at the same time is sufficient to prove a horizontal conspiracy to set prices regardless of whether the firms initially set prices at the same levels.
• B) Proof,standing alone,that firms initially set prices at the same levels is sufficient to prove a horizontal conspiracy to set prices regardless of whether the firms later changed prices at the same time.
• C) Showing that firms consistently set prices at the same levels and change prices at the same time is sufficient to prove a horizontal conspiracy to set prices.
• D) Merely showing that firms consistently set prices at the same levels and change prices at the same time is insufficient to prove a horizontal conspiracy to set prices.

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Definitions:

Dividend Growth Model

A valuation method used to estimate the price of a stock by using predicted dividends and discounting them back to their present value.

Dividend Yield

This financial statistic demonstrates a company's dividend payments per year compared to its current stock price.

Capital Gains Yield

The price appreciation component of a stock's total return, excluding dividends, calculated as the change in price over a period divided by the initial price.