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Price-Fixing by Firms in an Oligopoly Is

Question 249

Multiple Choice

Price-fixing by firms in an oligopoly is


A) more likely when the firms play a game repeatedly.
B) more likely when firms must commit to a single pricing strategy for the lifetime of the firm.
C) more likely when neither firm chooses the low-price guarantee strategy.
D) never sustainable because firms have an incentive to underprice each other.

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