Which of the following statements is true regarding collusion?
A)It can only occur when no dominant strategy is present.
B)It is a cooperative outcome between competitors.
C)Economists cannot theoretically model it.
D)It is a theoretical concept that is rarely observed.

Question

Quizplus · Accepted Answer

Collusion is a cooperative agreement between competitors to limit competition, often by fixing prices, limiting production, or dividing markets, which can lead to higher prices and reduced welfare for consumers.

Which of the Following Statements Is True Regarding Collusion