A Situation in Which One Firm's Actions with Respect to Price

question 266

Multiple Choice

A situation in which one firm's actions with respect to price, quality, advertising and related changes may be strategically countered by the reactions of one or more other firms in the industry is known as

• A) strategic dependence.
• B) economies of scale.
• C) the concentration ratio.
• D) barriers to entry.

---

Definitions:

Observational Studies

Research methods that involve assessing subjects without manipulating the environment or the participants, used to identify and describe natural occurrences.

Statistical Correlation

A measure that indicates the extent to which two or more variables fluctuate together, showing how one variable is linearly related to another.

Correlate

To have a mutual relationship or connection, where one thing affects or depends on another.

Large

Of considerable or relatively great size, extent, capacity, or quantity.