Using the Internet, some firms are now employing software that uses pricing algorithms to constantly adjust their online prices in response to what rivals are charging for similar products. This is making it easier for the
A) firms to collude tacitly in their pricing schemes.
B) government to prove price-fixing.
C) firms to gain monopoly power over their rivals.
D) government to enforce industrial regulation.

Question

Quizplus · Accepted Answer

The use of pricing algorithms that adjust prices according to competitors' pricing can allow firms to implicitly coordinate with each other, potentially leading to a form of tacit collusion in their pricing.

Using the Internet, Some Firms Are Now Employing Software That