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:

NLRA

The National Labor Relations Act, legislation enacted by the U.S. Congress in 1935 to protect the rights of employees and employers, to encourage collective bargaining, and to curtail certain private-sector labor and management practices.

Unfair Employer Practice

Any act by an employer that is unjust, discriminatory, or violates an employee's rights or labor laws.

Unionize

The act of organizing into or forming a union, especially for the purpose of collective bargaining with employers.

Bargain Collectively

The process by which employees negotiate contracts regarding wages, hours, and other terms of employment through their representatives.