Barometric price leadership exists when
a. one firm in the industry initiates a price change and the others follow it as a signal of changes in cost or demand in the industry.
b. one firm imposes its best price on the rest of the industry.
c. all firms agree to change prices simultaneously.
d. one company forms a price umbrella for all others.
e. the firms are all colluding.
a
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Refer to Table 17-3. What is the amount of profit added as a result of hiring the fourth worker?
A) $7,200 B) $1,200 C) $800 D) $400
According to the Latin phrase ceteris paribus:
a) Nothing else changes. b) Things do not remain equal. c) Resources are limited. d) There is no government intervention.
If a consumer is maximizing his/her utility for a given income, the:
A. marginal utility for every good purchased would be the same. B. marginal utility per dollar spent for all goods would be the same. C. marginal utility per dollar for all goods would be at a maximum. D. total expenditure on each good would be the same.
When a state government chooses to build more roads, the resources used are no longer available for public education programs. This dilemma illustrates the concept of
A. unintended consequences. B. scarcity. C. production expenses. D. unemployment issues.