Which of the Following Statements Is True About How the Volatility

question 31

Multiple Choice

Which of the following statements is true about how the volatility of demand conditions affects the sustainability of cooperative pricing?

• A)Price cutting is easier to detect when demand conditions are volatile
• B)Pricing coordination becomes easier in a volatile demand condition because firms are chasing a moving target
• C)Price cutting is harder to detect when demand conditions are stable
• D)Demand volatility is an especially serious problem when the production involves substantial variable costs
• E)Demand volatility is an especially serious problem when the production involves substantial fixed costs

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Definitions:

Social Psychology

The scientific study of how people's thoughts, feelings, and behaviors are influenced by the actual, imagined, or implied presence of others.

Rewards

Benefits or positive outcomes that are given in response to an individual's actions or behaviors, often used as a form of encouragement or motivation.

Positions

The roles or rankings that individuals occupy within a social or organizational structure.

Social Psychologists

Researchers specializing in the scientific study of how people's thoughts, feelings, and behaviors are influenced by the actual, imagined, or implied presence of others.