Multiple Choice
One reason why the smaller oligopolistic firms accept godfather pricing in unbalanced oligopoly is because they can
A) differentiate their products more fully in order to increase market power
B) engage in mergers if the godfather chooses the wrong price
C) together influence the price leader (godfather firm) to share industry profit more equally
D) enjoy a higher economic profit than they would otherwise
E) survive a price war without too many losses
Correct Answer:
Verified
Correct Answer:
Verified
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