Suppose that R. J. Reynolds raises the price of cigarettes by 10 percent. Although they have no requirement or agreement to do so, the other cigarette firms decide to raise their prices accordingly. This situation is best described as:
a. price leadership.
b. a cartel.
c. monopolistic competition.
d. a market with kinked demand.
a
You might also like to view...
Repeated games can lead to tacit collusion.
Answer the following statement true (T) or false (F)
It is estimated that if the inflation rate is lowered from 3 percent a year to 0 percent a year, the growth rate of real GDP will rise by ________ percentage points a year
A) 2.3 B) 3.2 C) 1 to 3 D) 0.06 to 0.09 E) 0
What can income elasticity of demand tell us about the nature of a good?
What will be an ideal response?
Empirical evidence regarding the effects of devaluation on the balance of trade indicates that
A) devaluation generally improves the BOT. B) devaluation generally hurts the BOT. C) no strong generalizations are possible. D) devaluation has no effect on the BOT.