Which of the Following Would Not Help Facilitate Coordination of Pricing

question 18

Multiple Choice

Which of the following would not help facilitate coordination of pricing across firms in an industry?

• A)Predatory pricing
• B)Firms settling on round number price points and price increase increments
• C)Using a single industry multiplier across firms to give discounts
• D)Using a standard cycle for adjusting prices
• E)Collusion

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Definitions:

Price

The price one must pay to obtain a good, service, or asset.

Claret

A term often used in Britain to refer to red Bordeaux wine.

Utility Function

A representation of how individual preferences are ranked for different bundles of goods.

Income

The financial gain earned or received by an individual, household, or entity, typically measured on a monthly or yearly basis through wages, dividends, or other earnings.