Parallel pricing-the tendency for companies in an industry to move prices more or less simultaneously-is typically an indicator of:
A)Healthy price competition
B)The sensitivity of the firms in an industry to the unpopularity of price increases
C)Lack of product differentiation
D)The desire of oligopolists to avoid price competition

Question

Quizplus · Accepted Answer

Parallel pricing is often seen in oligopolistic markets where a few firms dominate. These firms tend to avoid price competition to maintain stable profits, leading to simultaneous price changes.

Parallel Pricing-The Tendency for Companies in an Industry to Move