A Form of Implicit Collusion Where One Firm in an Oligopoly

question 55

Multiple Choice

A form of implicit collusion where one firm in an oligopoly announces a price change which is matched by other firms in the same industry is

• A)"follow the leader" pricing.
• B)price leadership.
• C)retaliation pricing.
• D)"tit-for-tat" pricing.

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Definitions:

Partnership Agreement

A legal document that specifies the rights, obligations, and responsibilities of each partner in a business partnership.

Initial Investment

The initial amount of money put into a project, asset, or venture to start it or acquire it.

Capital

Assets or resources that are used to generate income or invested to create financial gains.

Proportion

A comparative relationship between parts of a whole, often expressed as a ratio or fraction.