Price leadership is a form of industry match the change. in which one firm in an

Question

Price leadership is a form of industry match the change. in which one firm in an oligopoly announces a price change and the other firms in the O A. retaliation strategy O B. implicit collusion O C. auction strategy O D. explicit collusion How does the prisoners dilemma compare to the outcome of a repeated game? O A. There are no comparisons we can make between the two games. B. The equilibrium in both games is identical. C. In a repeated game, firms are more likely to charge a high price and receive high profits. O D. In a repeated game,firms are more likely to charge a low price, even though they would be better off they charged a high price

Explanation / Answer

Answer:- price leadership is a form of ........ in which one firm in an oligopoly announces a price change and other firms in the industry match the change.

Correct Answer:- Implicit collusion

Reason:- Implicit collusion is termed when the price change is followed by the competitor in an oligopoly

Answer:- How does the prisoner's dilemma compare to the outcome of a repeated game?

Correct Answer:- In a repeated game, two firms are more likely to charge the high price and receive high profits

Reason:- prisoner's dilemma results in charging higher prices to gain higher profits.

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