Suppose Two Firms in a Duopoly Implicitly Collude and Charge

question 74

Multiple Choice

Suppose two firms in a duopoly implicitly collude and charge a high price.How might each firm benefit from advertising that it will match the lowest price offered by its competitor?

• A)The offer to match prices is a way of deterring entry by other large firms, thereby keeping the market share of the existing firms intact.
• B)The advertisement ensures that the other firm does not cheat. If a firm cheats on the agreement and charges the lower price, the rival firm will retaliate by doing the same.
• C)The offer to match prices is a way of signaling to antitrust authorities that the firms are not engaged in illegal collusion.
• D)The advertisement is meant to suggest to consumers that the offered price is actually the lowest price available.

Identify symptoms and diagnostic criteria for obsessive-compulsive disorder.

Recognize the signs of depressive disorders and their impact on daily functioning.

Understand dissociative disorders and their triggers.

Comprehend the concept of preparedness in the development of phobias.

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Definitions:

Delay Telling

The practice of postponing the disclosure of information or news to individuals or groups, often for strategic or sensitive reasons.

Title I School

An educational institution receiving federal funds to support programs that enhance the learning of students in high-poverty areas.

Family Engagement

A mutually collaborative, working relationship with the family that serves the best interests of the student, in either the school or home setting, for the primary purpose of increasing student achievement; active engagement by the home, school, and community to come together and help students learn and develop to their full potential.

Urban Area

A geographic area characterized by higher population density and vast human features in comparison to areas surrounding it, usually referring to cities or towns.