All of the Following,except One,could Be an Explanation of a Price

question 109

Multiple Choice

All of the following,except one,could be an explanation of a price war between firms.Which is the exception?

• A)A breakdown in the collusive agreement between firms.
• B)The intense competition that one finds in a perfectly competitive industry.
• C)An aggressive young firm challenging the established price leadership of a rival firm.
• D)The action taken by established firms to ward off the possible entry of a new firm.

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Definitions:

Principal Relationship

A legal relationship between two parties in which one, the agent, is authorized to act on behalf of the other, the principal, in business transactions.

Unsecured Credit

A form of credit that is not backed by collateral, making it riskier for lenders since repayment relies solely on the borrower's creditworthiness and promise to pay.

Secondarily Liable

Refers to the condition where an individual or entity is not the primary debtor but still holds responsibility to fulfill an obligation if the primary party fails to do so.

Breach Of Warranty

A violation of the guarantees or assurances provided by a seller regarding the quality, condition, or functionality of a product.