________ Exist(s) When Firms Coordinate Their Production and Pricing Decisions

question 69

Multiple Choice

________ exist(s) when firms coordinate their production and pricing decisions not by directly communicating with each other but by exchanging signals with other firms about their intent to cooperate.

• A) Economies of scale
• B) Explicit collusion
• C) A learning race
• D) Tacit collusion

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Definitions:

Consistency

Consistency refers to the uniformity of actions, values, methods, measures, principles, expectations, and outcomes within a company or product line over time.

Price Increases

Adjustments made by a company to the selling prices of its products or services, typically to respond to inflation, increased production costs, or to improve profit margins.

Highly Differentiated

Describes products or services that are unique and stand out from those of competitors due to distinctive features or attributes.

Necessity

A requirement or urgent need for something essential or indispensable.