Question

multiple choice question
a type of implicit understanding used by oligopolists to coordinate prices without engaging in outright collusion is known as _______.

o price leadership
o game theory
o gentlemans agreement
o kinked demand

Explanation:

Price leadership is an implicit way for oligopolists to coordinate prices. In price - leadership, one firm (the leader) sets the price and others follow. Game theory is a broader concept about strategic interactions. A gentleman's agreement is a non - binding agreement. Kinked demand is about the shape of the demand curve in oligopoly.

Answer:

A. price leadership