Which of the following strategies allows interdependent fmns indirectly to coordinate their actions?
A)Market development
B)Harvest strategy
C)Divestment strategy
D)Price signaling
E)Market penetration

Question

Which of the following strategies allows interdependent fmns indirectly to coordinate their actions?
A)Market development
B)Harvest strategy
C)Divestment strategy
D)Price signaling 
E)Market penetration

Quizplus · Accepted Answer

Price signaling allows interdependent firms to indirectly coordinate their actions by observing and reacting to changes in the pricing strategies of other firms in the market. This helps them to maintain a competitive balance and avoid price wars. Market development, market penetration, harvest strategy, and divestment strategy are all strategies that a firm may use, but they do not directly influence interdependent firms in the market.

Which of the Following Strategies Allows Interdependent Fmns Indirectly to Coordinate