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:

Mainstream Economics

The body of knowledge, models, and assumptions predominantly accepted and taught by economists and academic institutions around the world.

Employment Relationship

The formal or informal agreement between an employer and an employee that outlines the terms of employment, including duties, rights, and obligations.

Employee Voice

The way employees communicate their views, concerns, and suggestions about their work and the functioning of their organization to their employers.

Government Intervention

Refers to the actions taken by a government to influence or directly regulate various aspects of its economy, social affairs, or public policy.