Suppose that three oligopolistic firms are currently charging $12 for

Suppose that three oligopolistic firms are currently charging $12 for their product. The three firms are about the same size.

Firm A decides to raise its price to $18, and announces to the press that it is doing so because higher prices are needed to restore economic vitality to the industry. Firms B and C go along with Firm A and raise their prices as well. This is an example of A) price leadership.
B) collusion.
C) the dominant firm model.
D) the Stackelberg model.
E) none of the above

ANSWER

A