Which Statement Provides the BEST Example of a Grim Trigger

question 177

Multiple Choice

Which statement provides the BEST example of a grim trigger rule?

• A) A price increase by one firm is not met by the other firms in the market.
• B) A decision by one firm triggers government regulation of all firms in the industry.
• C) A negative decision triggers a tit-for-tat strategy.
• D) A decision by one player to defect is met by a permanent retaliatory decision.

---

Definitions:

Mixing Department

A section within a manufacturing process where various components are combined to create a product, often seen in industries like food, chemicals, and pharmaceuticals.

Conversion Costs

The combined costs of direct labor and manufacturing overhead that are incurred to convert raw materials into finished goods.

Weighted Average Method

An inventory costing method where the cost of goods sold and ending inventory are calculated based on the average cost of all items available for sale during the period, weighted by the quantities.

Continuous Process

A manufacturing process where raw materials are continuously fed into production, and products are continuously outputted.