Business, 21.12.2019 00:31 kiarasanchez17

Two beer-brewing companies, piwo and olut, operate in a duopoly initially, they achieve tacit collusion, charging beer prices in excess of their marginal costs and earning substantial economic profit. suppose new management at piwo decides to cut prices in order to increase its market share and profit. in response, the management at olut slashes its prices below marginal cost in an effort to push piwo out of business. this is an example of: . a cartel b. price leadership c. a price war

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Two beer-brewing companies, piwo and olut, operate in a duopoly initially, they achieve tacit collus...