Price-Fixing by Firms in an Oligopoly Is

question 428

Multiple Choice

Price-fixing by firms in an oligopoly is

• A) more likely when the firms play a game repeatedly.
• B) more likely when firms must commit to a single pricing strategy for the lifetime of the firm.
• C) more likely when neither firm chooses the low-price guarantee strategy.
• D) never sustainable because firms have an incentive to underprice each other.

---

Definitions:

Inventory Turnover

A metric indicating the frequency at which a company's stock is sold and replenished within a specific timeframe.

Inventory Turnover

An indicator revealing the number of times a company's inventory is turned over and restocked during a specific period, demonstrating how efficiently inventory is handled.

Current Ratio

A financial metric indicating a firm's capacity to settle short-term liabilities or debts coming due within a year.

Company

An enterprise instituted by multiple persons who collaborate to oversee and execute operations in a business, encompassing both commercial and industrial sectors.