Which of the following is the best example of tacit collusion? a) the formation of a...
Which of the following is the best example of tacit collusion?
a) the formation of a cartel
b) price leadership
c)predatory pricing
d)non cooperative pricing behavior
Homework Answers
Which of the following is the best example of tacit collusion?
Correct Answer
b) price leadership
Tacit collusion is also called as price leadership. Under this the other firms accept the price fixed by a dominant firm. Usually this is tacit or silent collusion. Here the price is fixed by the dominant firm high enough that only the cost efficient firms can able to earn profits.
ANSWER :
Option b : Price leadership.
Tacit collusion is applicable to oligopoly market and is a collusion between competitors without exchange of explicit information but a silent agreement for product related policies. Price leadership is an example of such a collusion. In this case, leader firm sets price and other competitors tacitly follow the same pricing for the product.
Add Answer to:
Which of the following is the best example of tacit
collusion?
a) the formation of a...
Which of the following is not an example of a barrier to entry? O A. altering...
Which of the following is not an example of a barrier to entry? O A. altering the characteristics of a differentiated product O B. predatory pricing OC. advertising OD. the introduction of new products O E a cartel G Tacit collusion in an oligopolistic industry O A. occurs when firms achieve the cooperative outcome without an explicit agreement B. results in a non-cooperative equilibrium OC. occurs when firms make an explicit agreement to cooperate OD. results in competitive behaviour, O...
Decision Point: Strategies for Supporting Tacit Collusion The profit increase is clear now. If you can raise the price...
Decision Point: Strategies for Supporting Tacit Collusion The profit increase is clear now. If you can raise the price of hearing aids to $2,500 and can get Hanvil to do the same, your profit will increase by 14.6 percent. This would be more than enough to satisfy the shareholders. Your team presents a bunch of different options to make tacit collusion more likely. You need to narrow down the choices by selecting the four most viable options. Select the four...
Which of the following is NOT TRUE about collusion? It refers to collective attempts to reduce...
Which of the following is NOT TRUE about collusion? It refers to collective attempts to reduce competition. Explicit collusion exists when firms directly negotiate output and pricing. Cartel members ignore agreements among them. Coordination is now frequently used to sugarcoat collusion. Collusion is outlawed by antitrust laws in many countries
47) Firms in an oligopoly i. are independent of each other's actions. ii. can each influence...
47) Firms in an oligopoly i. are independent of each other's actions. ii. can each influence the market price. ii. charge a price equal to marginal revenue. A) 1 only B) ii only C) ii only D) i and ii E) i, ii, and ii 48) Which of the following are characteristics of an oligopoly? i) The HHI for an oligopoly is between 100 and 1800. i) There are a few firms that compete. ii) The firms can increase their...
Price collusion occurs in oligopolistic industries because
a. Price collusion occurs in oligopolistic industries because price competition can lower revenue for all Sms price competition results in economies of scale. costs are similar among firms price competition results in diseconomies of scale b. Assess the economic desirability of collusive pricing Collusive pricing is not economically desirable from the oligopoly's viewpoint because it cannot control entry Collusive pricing is economically desirable from society's viewpoint because it is a capital drain Collusive pricing is not economically desirable from society's viewpoint because price equals average total cost Collusive pricing...
e. Three examples of entry barriers that firms with market power can create are and Which...
e. Three examples of entry barriers that firms with market power can create are and Which of the following is not an example of a barrier to entry? O A. altering the characteristics of a differentiated product O B. predatory pricing OC. advertising OD. the introduction of new products O E a cartel
Question 11 Which market structure has a few interdependent sellers? monopolistic competition monopoly perfect competition oligopoly...
Question 11 Which market structure has a few interdependent sellers? monopolistic competition monopoly perfect competition oligopoly Question 12 Which of the following is legal? collusion none of the above price leader cartel Question 13 When a dominant firm sets the price and others follow, what is that called? price leader crowding out cartel collusion Question 14 Which theory answers the question "How would my competitor respond if I did this?" crowding out price leadership Game Theory collusion Question 15 Which...
The government would attempt to enforce antitrust policy under which of the following circumstances? A. to...
The government would attempt to enforce antitrust policy under which of the following circumstances? A. to prevent cartels from agreeing to limit quantities and set prices B. to prevent firms' strategic behavior that leads to tacit collusion C. to prevent firms' interdependence that leads to tit for tat behavior D. to prevent duopolists from engaging in product differentiation that leads to higher prices E. to prevent excess capacity because of the unnecessary waste that it creates
69. Which of the following is the best example of a public good? a. Music downloads...
69. Which of the following is the best example of a public good? a. Music downloads b. Designer clothes c. Natural forests d. National defense 70. A street light is a ________. a. common pool resource good b. club good c. private good d. public good 71. A congested street is ________ in consumption. a. non-excludable but rival b. non-excludable and non-rival c. excludable but non-rival d. excludable and rival 72. The free-rider problem exists for goods that are ________....
1. Which of the following industry structures is best associated with low barriers to entry? a....
1. Which of the following industry structures is best associated with low barriers to entry? a. Monopoly d. monopolistic competition b. a cartel e. a collusive industry c. Oligopoly 2. Which of the following is the best example of a monopolistically competitive market? a. Corn d. retail clothing stores b. Gasoline e. wheat c. electric utilities 3. Which of the following is the best example of a firm operating in a monopolistically competitive market? a. a Nebraska corn farmer b....
Which of the following is not an example of a barrier to entry? O A. altering the characteristics of a differentiated product O B. predatory pricing OC. advertising OD. the introduction of new products O E a cartel G Tacit collusion in an oligopolistic industry O A. occurs when firms achieve the cooperative outcome without an explicit agreement B. results in a non-cooperative equilibrium OC. occurs when firms make an explicit agreement to cooperate OD. results in competitive behaviour, O...
Decision Point: Strategies for Supporting Tacit Collusion The profit increase is clear now. If you can raise the price of hearing aids to $2,500 and can get Hanvil to do the same, your profit will increase by 14.6 percent. This would be more than enough to satisfy the shareholders. Your team presents a bunch of different options to make tacit collusion more likely. You need to narrow down the choices by selecting the four most viable options. Select the four...
47) Firms in an oligopoly i. are independent of each other's actions. ii. can each influence the market price. ii. charge a price equal to marginal revenue. A) 1 only B) ii only C) ii only D) i and ii E) i, ii, and ii 48) Which of the following are characteristics of an oligopoly? i) The HHI for an oligopoly is between 100 and 1800. i) There are a few firms that compete. ii) The firms can increase their...
a. Price collusion occurs in oligopolistic industries because price competition can lower revenue for all Sms price competition results in economies of scale. costs are similar among firms price competition results in diseconomies of scale b. Assess the economic desirability of collusive pricing Collusive pricing is not economically desirable from the oligopoly's viewpoint because it cannot control entry Collusive pricing is economically desirable from society's viewpoint because it is a capital drain Collusive pricing is not economically desirable from society's viewpoint because price equals average total cost Collusive pricing...
e. Three examples of entry barriers that firms with market power can create are and Which of the following is not an example of a barrier to entry? O A. altering the characteristics of a differentiated product O B. predatory pricing OC. advertising OD. the introduction of new products O E a cartel
Most questions answered within 3 hours.
-
Where is the error in this code sequence?
String s1 = "Hello";
String s2 = "ello";...
asked 11 months ago -
Financial data for Joel de Paris, Inc., for last year
follow:
Joel de Paris, Inc.
Balance...
asked 11 months ago -
Consider this reaction:
Al2(SO4)3 (aq)+ BaCl3
(aq) Al2Cl6 (aq)- +
3BaSO4(s) . What is the...
asked 11 months ago -
Suppose that Savneet is considering increasing her
recent random sample from 20 car rentals to 40...
asked 11 months ago -
Trucks arrive at an unloading terminal at an average rate of 120
per hour.
Trucks arrive...
asked 11 months ago -
Why are methanol and ethanol completely soluble in water while
octanol is not very little soluble....
asked 11 months ago -
A facilities manager at a university reads in a research report
that the mean amount of...
asked 11 months ago -
When the CuSO4 is rehydrated by adding water to the anhydrous
compound, is this an endothermic...
asked 11 months ago -
A ray of sunlight is passing from diamond into crown glass; the
angle of incidence is...
asked 11 months ago -
A block of mass 0.249 kg is placed on top of a light, vertical
spring of...
asked 11 months ago -
how do the kidneys compensate in the presences of acidosis
a) trigger hyperventilate
b) reserve acid...
asked 11 months ago -
Question 501 pts
The rental rate of capital to the firm increases. Which of the
following...
asked 11 months ago