If Fuel is Us is in tacit collusion with four smaller propane delivery firms and Fuel is Us consistently makes price changes that the other four firms then also make, this is an example of ________by Fuel is Us.

Question

Quizplus · Accepted Answer

This is an example of price leadership, where Fuel is Us sets the price and the other firms follow suit. This is a form of tacit collusion, where the firms coordinate their pricing behavior without explicitly agreeing to do so. Meet-the-competition clause and meet-or-release clause are contractual arrangements between suppliers and retailers, while precommitment involves making a binding commitment in advance.

If Fuel Is Us Is in Tacit Collusion with Four