Asked by
Monica Pantaleon
on Oct 27, 2024
Verified
Price leadership occurs if:
A) smaller firms in an industry silently agree to charge the same price as the largest firm.
B) two or more firms in an industry agree to fix the price at a given level.
C) competition among a large number of small firms generates a stable market price.
D) competition among a large number of small firms generates similar but slightly different prices.
Price Leadership
A strategy where the dominant firm in a market sets the price of goods or services, and other competitors follow suit, often seen in oligopolistic markets.
Industry Agreement
A collective consensus or a formal contract among companies within the same industry, often regarding standards, pricing, or other competitive practices.
- Distinguish and assess the methodologies adopted by corporations in oligopolistic settings, including collusive behavior, non-monetary competitive tactics, and dominance in pricing strategies.
Verified Answer
HM
Learning Objectives
- Distinguish and assess the methodologies adopted by corporations in oligopolistic settings, including collusive behavior, non-monetary competitive tactics, and dominance in pricing strategies.