If Toyota establishes prices for new cars each year,and General Motors and Ford model their prices on General Motors' prices,this is known as:

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Quizplus · Accepted Answer

This is an example of price leadership, where one company establishes prices and others in the industry follow suit. It is not an example of predatory pricing because there is no indication of one company trying to eliminate competitors through low prices, nor is it a cartel because the companies are not colluding to control prices. It is also not monopoly pricing because there are multiple companies in the industry. Competitive pricing would involve companies pricing their products based on each other's prices, rather than just one company's.

If Toyota Establishes Prices for New Cars Each Year,and General