Ask Question
Today, 03:43

A trigger strategy is a strategy that:

A. is not relevant to oligopolies.

B. determines when to enter an industry.

C. depends on an opponent's past decisions.

D. tells a business to leave the industry because the price is below the AVC.

+3
Answers (1)
  1. Today, 06:11
    0
    Answer: C. depends on an opponent's past decisions.

    Explanation:

    A trigger strategy is based on your opponent's past decisions. Essentially it works when a player cooperates with another but then punishes them if they find out that they are no longer cooperating.

    In this strategy, a player intends to maximise profits for both the firms who are colluding.

    If the other player then deviates from the Collusion, the player then changes their strategy based on the Opponent's new strategy. This will then lead them to a Nash Equilibrium where they will earn less than they would have had they continued Colluding.
Know the Answer?
Not Sure About the Answer?
Find an answer to your question ✅ “A trigger strategy is a strategy that: A. is not relevant to oligopolies. B. determines when to enter an industry. C. depends on an ...” in 📘 Business if you're in doubt about the correctness of the answers or there's no answer, then try to use the smart search and find answers to the similar questions.
Search for Other Answers