According to the Text, Why Would Firms in an Industry

Multiple Choice

According to the text, why would firms in an industry follow the price leadership of another firm?

A) fear of retribution from the price leader if they don't follow
B) smaller firms do not have the resources to determine optimal price
C) the price chosen by the leading firm is the optimal one for all
D) profit will be distributed in accordance with firms' market share
E) every firm in the industry has confidence the leading firm will act for the benefit of all firms