A Form of Implicit Collusion Where One Firm in an Oligopoly

question 55

Multiple Choice

A form of implicit collusion where one firm in an oligopoly announces a price change which is matched by other firms in the same industry is

• A)"follow the leader" pricing.
• B)price leadership.
• C)retaliation pricing.
• D)"tit-for-tat" pricing.

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Definitions:

Keeps At It

Persistence and continued effort towards achieving a goal or completing a task.

Intrinsic Motivation

Motivation driven by internal rewards or satisfaction, where the activity itself is the primary reward.

Extrinsic Motivation

Extrinsic Motivation involves performing an activity in order to attain an outcome that is separate from the person, such as rewards or avoiding punishment.

Incompatible

Unable to exist or work together without conflict.