Author Question: Barometric price leadership exists when a. one firm in the industry initiates a price change and ... (Read 114 times)

rmenurse · **on:** Jul 1, 2018

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.

Question 2

If the game is played for 10 years, the Nash equilibrium will be
a. Low, Low
b. Low, High
c. High, Low
d. High, High