question archive Which of the following is true? a
Which of the following is true? a
Subject:MarketingPrice:2.88 Bought3
Which of the following is true?
a. In the model of price leadership, the dominant firm consistently charges the lowest price.
b. Opportunistic behavior is discouraged by the desire to have repeat transactions.
c. The strategic dependence that characterizes oligopoly means that no firms can earn positive accounting profits.
d. Price wars are most common in perfect competition.
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The correct answer is b. Opportunistic behavior is discouraged by the desire to have repeat transactions.
- Opportunistic behavior is discouraged by the aversion to repeat transactions. The price leader charges higher prices, thus A is incorrect. Oligopolies are able to earn accounting profits, thus C is incorrect. Price wars are not common is perfectly competitive markets, thus D is incorrect.
