All of the Following,except One,could Be an Explanation of a Price

question 109

Multiple Choice

All of the following,except one,could be an explanation of a price war between firms.Which is the exception?

• A)A breakdown in the collusive agreement between firms.
• B)The intense competition that one finds in a perfectly competitive industry.
• C)An aggressive young firm challenging the established price leadership of a rival firm.
• D)The action taken by established firms to ward off the possible entry of a new firm.

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Definitions:

Belief in a Just World

The cognitive bias leading individuals to assume that people get what they deserve, thereby justifying suffering and success alike.

Justice System

A hierarchical system of courts and institutions designed to administer legal processes, uphold laws, and deliver justice to individuals and the community.

Strict Laws

Regulations that are rigorous in nature and are enforced with strict penalties for violations.

Pluralistic Ignorance

A situation where the majority of group members privately reject a norm, but incorrectly assume that most others accept it, leading to a continuation of the norm in the group.