In barometric price leadership, one firm announces a change in price
a. and the other firms follow
b. but the other firms refuse to follow
c. that it hopes will be accepted by others
d. which is merely a test of the market
e. none of the above.
c
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Economics is the study of the logic of
A. rational decisions. B. decision-making activities. C. ends and means. D. choosing options from those available. E. All of the responses are correct.
What are explicit costs? What are implicit costs?
What will be an ideal response?
If firms execute a strategy that triggers a permanent punishment, the result in an indefinitely repeated game is
A) undefined. B) the non-cooperative Nash equilibrium. C) the collusive Nash equilibrium. D) economically inefficient.
In the short-run Keynesian model where the marginal propensity to consume is 0.75, to offset a recessionary gap resulting from a $1 billion decrease in autonomous consumption, transfers must be:
A. decreased by $1 billion. B. increased by $1.33 billion. C. decreased by $1.33 billion. D. increased by $1 billion.