For a Time, Either R

question 33

Multiple Choice

For a time, either R. J. Reynolds or Phillip Morris raised the prices of cigarettes twice a year by about 50 cents per carton. The other firms in the industry raised their prices by the same amount. Such behavior results in:

• A)predatory pricing.
• B)a price war.
• C)price leadership.
• D)producer sovereignty.
• E)productive efficiency.

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Definitions:

Piece Rate

A compensation system where workers are paid a fixed sum for each unit of production completed, rather than by the hour or salary.

Individual

Referring to a single human being as distinct from a group, class, or family.

Team-based Pay

A compensation strategy where pay is based on the performance of the team as a whole, rather than individual performance.

Performance Programs

Structured initiatives designed to improve the efficiency and effectiveness of an organization or individual's work.