The Recent Rise in the Price of Gasoline Has Caused

question 124

Multiple Choice

The recent rise in the price of gasoline has caused:

• A) automakers to produce more gas-efficient cars.
• B) automakers to drop the price of gas-efficient vehicles.
• C) automakers to spend more money marketing bigger vehicles.
• D) would not affect an automaker's supply decisions.

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Definitions:

Tacit Collusion

A form of collusion in which firms in a market coordinate their pricing or output strategies without explicit communication or agreement.

Competition

The rivalry among sellers trying to achieve such goals as increasing profits, market share, and sales volume by varying the elements of the marketing mix.

Illegal

Activities or actions that are prohibited by law and subject to legal penalties, including fines and imprisonment.

Legal

Pertaining to laws or the system of rules that a particular country or community recognizes as regulating the actions of its members.