_____ occurs in markets with a high concentration of sellers.Any price offered by one company will be matched by its competitors in order to avoid giving the low-price seller a distinct advantage.
A) Cost-plus pricing
B) Price signaling
C) Value pricing
D) Price lining
E) Price standardization

Question

Quizplus · Accepted Answer

This scenario describes price signaling, which occurs in oligopolistic markets with few dominant sellers. In this situation, any company attempting to lower prices will be quickly matched by competitors, creating a "price war" that could harm all involved. As a result, companies may communicate their intended prices to one another in advance to avoid this outcome, which is known as price signaling.

_____ Occurs in Markets with a High Concentration of Sellers