A Form of Implicit Collusion Where One Firm in an Oligopoly

question 55

Multiple Choice

A form of implicit collusion where one firm in an oligopoly announces a price change which is matched by other firms in the same industry is

• A)"follow the leader" pricing.
• B)price leadership.
• C)retaliation pricing.
• D)"tit-for-tat" pricing.

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Definitions:

Sample Slope Coefficient

A parameter in a linear regression equation that represents the change in the dependent variable for a one-unit change in the independent variable.

Residual

The difference between the observed and the predicted value in a regression model.

Actual Value

The true or factual value of a variable or quantity, without estimation or error.

Estimated Value

An approximation of the worth of something, often used in the context of potential outcomes in decision making or investment.