Careful study of the retail tire market

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Reference no: EM13978301

1. Suppose that Jack and Jill use a tit-for-tat scheme to encourage cartel pricing. Jill chooses the low price for two successive months, and then switches to the high price. The two firms will deviate from cartel pricing for a total of _________ months

2. A careful study of the retail tire market suggests that low-price guarantees _________ (increase/decrease) prices by about _________ (1, 10, 25, 37) percent.

Reference no: EM13978301

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