Suppose a firm that sells a variety of athletic shoes is trying to start a pattern of price leadership in its market.Which of the following is not a problem this firm might have to face?
A) Rivals recognize the intent of its actions.
B) Other firms may not necessarily follow the leader.
C) Other firms may not follow the leader but offer better service instead.
D) Differentiation among products allows for more variation in price.
E) The price leader must keep costs lower than other firms'.
Correct Answer:
Verified
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A)are monopolistically
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A)firms
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