Which of the Following Statements About Price Wars Is True

question 27

Multiple Choice

Which of the following statements about price wars is true?

• A)Firms that have to deal with the possibility of price wars often have extremely flexible prices.
• B)Firms that do not have to deal with the possibility of price wars often have sticky prices.
• C)Price wars tend to increase the short-run flexibility of prices.
• D)Firms that have to deal with the possibility of price wars often have sticky prices.

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Definitions:

Per Capita

A statistical measure that divides an aggregate by the number of individuals in a population to give an average.

Industrially Advanced

Pertaining to countries or regions that have highly developed and complex industrial sectors, often characterized by innovation and high levels of production and income.

Temporary Workers

Individuals hired for a limited period, often to meet seasonal demands, project deadlines, or cover for permanent staff absences.

Government Officials

Individuals appointed or elected to conduct public affairs and administer government functions.