The Way Someone Behaves in Accordance with an Order or Directive

question 57

Multiple Choice

The way someone behaves in accordance with an order or directive given by another person is .

• A) normative power
• B) remunerative power
• C) coercive power
• D) compliance

---

Definitions:

Leader Firms

Companies that dominate a particular market or industry, often setting trends and standards for others to follow.

Stackelberg Duopoly

A model of oligopoly in which one firm (the leader) sets its output or price first, and the other firm (the follower) then chooses its output or price in response, considering the leader's decisions.

Collusive Duopoly

A situation where two firms in a market agree to collaborate, often secretly, to increase their joint profits by agreeing on prices or output levels.

Extensive Form

A representation of a game in decision tree format, showing the sequence of moves, possible strategies, and outcomes.