Asked by
Aliyah Martinez
on Oct 27, 2024
Verified
In the past,most of the cars sold in the United States were produced by the Big Three auto companies.General Motors would announce its prices for the new model year first,and then the other companies would match it.This practice was an example of:
A) price leadership.
B) noncooperative behavior.
C) a kinked demand model.
D) a cartel.
Price Leadership
A pattern of behavior in which one firm sets its price and other firms in the industry follow.
Big Three
Refers to the three major American automotive companies: Ford, General Motors, and Chrysler.
- Determine and dissect the maneuvers employed by entities in oligopolistic environments, covering collusive actions, non-price forms of competition, and exertion of price leadership.
Verified Answer
LT
Learning Objectives
- Determine and dissect the maneuvers employed by entities in oligopolistic environments, covering collusive actions, non-price forms of competition, and exertion of price leadership.