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corie corie
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6 years ago
What is the potential drawback if firms follow a price leadership model in an actual market?
A) The price leader's behavior may be interpretted as collusion and be subject to antitrust sanctions.
B) Excessive price signalling may force all of the firms to adopt price-taking strategies, which reduces overall profits among the firms.
C) Disputes about which firm should be the price leader may lead to price wars.
D) Signalling efforts increase the firms' fixed costs of production.
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Microeconomics

Microeconomics


Edition: 8th
Author:
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boransalboransal
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6 years ago
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corie Author
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6 years ago
I appreciate what you did here, answered it right Smiling Face with Open Mouth
Transonic
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Yesterday
Thanks for your help!!
7.prime7105
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2 hours ago
You make an excellent tutor!
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