The Tit-For-Tat Strategy Implies That the Firms

Multiple Choice

The tit-for-tat strategy implies that the firms

A) in non-competitive industries match price increases but ignore price decreases
B) will follow the lead of the dominant firm in making pricing decisions
C) prices will change whenever fixed cost changes
D) cooperate on the first round, and then follow your competitors reactions on the second round
E) price will only change if demand changes