Question

If Delta Airlines were to significantly change its fare structure and flight schedule to enhance its competitive position in response to aggressive price cutting by Southwest Airlines, this would be an example of


72) ______



A) explicit collusion.


B) competitive dynamics.



C) a harvest strategy.


D) tacit collusion.

Answer 1

Answer: Option B

Explanation:

Competitive dynamics means the business organisations take actions based on the competitors in the market in order to maintain their competitiveness in the business. The businesses try to protect their competitive advantages by reacting similarly to the competitors in the market.

Explicit collusion means businesses together try to rise the market price. Harvest strategy means to reduce the market spending on the products in the market. In tactic collusion the business try to reduce the reaction of the other firms for the action taken by them.