Asked by
Pallavi Halde
on Oct 27, 2024
Verified
A situation in which one firm sets the price and other firms in the industry match it is known as:
A) a Nash equilibrium.
B) price leadership.
C) Cournot competition.
D) price competition.
Price Leadership
A situation where one company (the price leader) sets the price of goods or services in the market, and other companies follow suit, often seen in oligopolistic markets.
Nash Equilibrium
An idea in strategic game theory in which none of the participants can gain by altering their approach if all other players maintain their current strategies.
- Recognize and evaluate the tactics employed by companies within oligopolistic markets, such as collusion, nonprice competition, and price leadership strategies.
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Learning Objectives
- Recognize and evaluate the tactics employed by companies within oligopolistic markets, such as collusion, nonprice competition, and price leadership strategies.