Which of the Following Would Increase the Likelihood That Firms

question 61

Multiple Choice

Which of the following would increase the likelihood that firms in an industry could successfully collude?

• A) a large number of firms in the industry
• B) unstable demand conditions in the industry
• C) high barriers to entry in the industry
• D) product characteristics that make it difficult for firms to detect other firms that cheat on the agreement

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Definitions:

Recent Decades

A term referring to the relatively immediate past, often used to describe changes or trends over the last 20 to 30 years.

Economic Situation

Macroeconomic factor that affects the way consumers buy merchandise and spend money, both in a marketer’s home country and abroad; see also inflation, foreign currency fluctuations, and interest rates.

Target Markets

Specific groups of consumers at which a company aims its products and services, identified by various demographic, geographic, and psychographic factors.

Factors

Elements or circumstances that contribute to a result or are considered in a decision-making process.