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:

Expected Return

The weighted average of all possible returns from an investment, accounting for the probability of each outcome.

Beta

An indicator of how much a stock's price fluctuates compared to the entire market, showing the level of risk associated with its returns.

Standard Deviation

A statistical measure that quantifies the amount of variation or dispersion of a set of values, commonly used in finance to assess the risk associated with a particular investment.

Correlation

Correlation is a statistical measure that describes the extent to which two variables change together, indicating the strength and direction of their relationship.