-Collusion results when a group of firms i. act separately to limit output, lower prices, and decrease economic profits.
Ii) act together to limit output, raise prices, and increase economic profits.
Iii) in Australia legally fix prices.

Question

Quizplus · Accepted Answer

Collusion typically involves firms acting together to limit output and raise prices in order to increase their economic profits, not to lower them or decrease profits. It is generally considered illegal in many jurisdictions, including Australia, unless specifically allowed under certain conditions.

-Collusion Results When a Group of Firms I