Assume a monopolist regularly posts price increases three months in ad

Assume a monopolist regularly posts price increases three months in advance of when they will take effect. After a small number of new firms enter the market, the original firm continues the practice of announcing price increases in advance.

Following the court’s logic in the Ethyl case, the firms in this market would not be guilty of price fixing behavior. Indicate whether the statement is true or false

ANSWER

TRUE