Suppose that Sun Beach only has three movie theaters.One movie theater decreases its movie ticket price and later that same day,the other two do the same.Which of the following is true?

Question

Quizplus · Accepted Answer

The fact that the other two theaters followed the first one in lowering their prices suggests that the first theater was the implicit price leader, i.e. the one who set the precedent for the other theaters to follow without any explicit agreement or collusion. Options A and B are incorrect as there is no evidence of collusion or explicit illegal price fixing in this scenario.

Suppose That Sun Beach Only Has Three Movie Theaters