Four propane delivery firms have a tacit agreement to charge a service fee of $50 in addition to $5 per gallon of propane. If the firms' cost of propane increases and one of the four firms advertises that it will increase the cost of a gallon of propane to $5.50 next month, this is an example of ________.

Question

Quizplus · Accepted Answer

A preannouncement occurs when a company publicly announces a future change in pricing or product offerings before it actually happens, as in this case where the firm advertises a future price increase.

Four Propane Delivery Firms Have a Tacit Agreement to Charge