Four propane delivery firms have a tacit agreement to charge a service fee of $50 in addition to $5 per gallon of propane. If the firms' cost of propane increases and one of the four firms advertises that it will increase the service fee to $75 and raise the cost of a gallon of propane to $5.50 next month, this is an example of ________.
A) a preannouncement
B) price leadership
C) a meet-the-competition clause
D) a precommitment
A) a preannouncement
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According to the article, ________ in ________ have contributed to Canada's ________ change in real GDP
A) increases; consumption and exports; expected B) decreases; exports and investment; unexpected C) increases; consumption and investment; unexpected D) decreases; exports and government spending; expected
An increasing federal budget deficit will ________ the federal government debt as this will ________ the total value of U.S. Treasury bonds outstanding
A) increase; increase B) increase; decrease C) not impact; not change D) not impact; be offset by
In the new Keynesian view a monopolistically competitive firm may fail to increase the price of its product as demand increases because
A) if it does so it will lose all of its customers. B) the cost to it of changing prices may exceed the benefit of doing so. C) prices of monopolistically competitive firms are regulated by the federal government and may only be changed with permission. D) for a monopolistically competitive firm, price is below marginal cost.
Average total cost
A. the sum of fixed cost and average variable cost. B. is always increasing. C. is the average cost of producing each unit of output. D. measures the spread of overhead across output.