Two Firms Would Sometimes Be Better Off If They Got

question 20

Multiple Choice

Two firms would sometimes be better off if they got together and agreed to charge a high price, rather than to compete and risk having to charge a lower, competitive price.What is the greatest deterrent to this strategy?

• A)The firms may find that the price they charge is greater than the price that would maximize their profits.
• B)An agreement by firms to charge high prices is illegal. The government can fine the firms and send their managers to jail.
• C)Consumers may resent having to pay high prices and not buy from either of the firms.
• D)One of the firms may decide to lower its price and take business away from the firm that charged the high price.

Comprehend the principles of distributed leadership within teams.

Understand the concept and consequences of decision making in teams without critical evaluation.

Differentiate between centralized and decentralized communication networks in team settings.

Recognize the effects of team cohesion on decision making and problem-solving abilities.

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Definitions:

White-Label Goods

products produced by one company but packaged and sold under another company's brand, often allowing for customization by the reselling company.

Physically Entering

The act of going into a specific space or location in person, as opposed to virtually or in an abstract sense.

Joint Venture

A business arrangement in which two or more parties agree to pool their resources for the purpose of accomplishing a specific task or business activity.

Greenfield Operations

Business ventures that start from scratch in a new territory or market, without any prior operations or constraints.