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Homework answers / question archive / If Mario's Pizza, Angelo's Pizza, and Bella's Pizza are all competing in the pizza delivery market and Bella's Pizza consistently is the first to change prices, Bella's Pizza might be: A

If Mario's Pizza, Angelo's Pizza, and Bella's Pizza are all competing in the pizza delivery market and Bella's Pizza consistently is the first to change prices, Bella's Pizza might be: A

Marketing

If Mario's Pizza, Angelo's Pizza, and Bella's Pizza are all competing in the pizza delivery market and Bella's Pizza consistently is the first to change prices, Bella's Pizza might be:

A. signaling to the other firms to consistently maintain their prices.

B. offering to be the price leader.

C. signaling to the other firms to consistently raise their prices.

D. signaling to the other firms to consistently lower their prices.

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  • The correct option is B. offering to be the price leader.

Bella's Pizza is trying to follow the price leadership model by being the first one to change the prices and hence wishing other pizza delivery companies to follow its pricing strategy.

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