Suppose that most of the cars sold in North America are produced by the Big Three American auto makers (Ford,Chrysler,and General Motors).If General Motors would announce its prices for the new model year first,and then the other companies would match it,this would be an example of

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Quizplus · Accepted Answer

This is an example of price leadership, where one company (in this case, General Motors) sets the price and the other companies follow suit. It is a form of collusion but is more informal and does not necessarily involve explicit agreements between the companies.

Suppose That Most of the Cars Sold in North America