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 service fee to $75 and raise the cost of a gallon of propane to $5.50 next month, this is an example of _________ .

Question

Quizplus · Accepted Answer

This is an example of a preannouncement, where a firm publicly announces a future change in pricing strategy before it is implemented.

Four Propane Delivery Firms Have a Tacit Agreement to Charge