Suppose the Tidy Laundry Detergent Company, Which Sells 40% of All

Multiple Choice

Suppose the Tidy Laundry Detergent Company, which sells 40% of all detergent, is thinking about raising its price. Before Tidy makes the change, they analyze the likely responses of the All-Clean Detergent Company, which sells 35% of all detergent, and Cheerful Detergent Company, which sells 20% of all detergent. Tidy's behavior shows

A) mutual interdependence in pricing decisions.
B) nonprice competition.
C) difficult entry in oligopolies.
D) collusion.