The tit-for-tat strategy implies that the firms
a. in non-competitive industries match price increases but ignore price decreases
b. will follow the lead of the dominant firm in making pricing decisions
c. prices will change whenever fixed cost changes
d. cooperate on the first round, and then follow your competitors reactions on the second round
e. price will only change if demand changes
D
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Bid-rigging is more likely when
a. auctions are for larger amounts b. auctions are infrequent c. auctions are for smaller amounts d. the auctioneer is paid on commission rather than a fixed fee
Which of the following is an example of a backward linkage?
a. A car industry creates a need for car dealerships. b. A compact disc industry creates a need for CD players. c. The development of a shoe industry creates a demand for a leather industry. d. An increase in the population increases the demand for food. e. New educational facilities improve the literacy rate of the population.