Cooperation between businesses to hold prices high is known as _______ and the noncooperative equilibrium in business is called _______.
A)collusion; competition
B)competition; collusion
C)a commitment strategy; collusion
D)collusion; a commitment strategy

Question

Quizplus · Accepted Answer

Collusion refers to an agreement among firms to avoid competition by fixing prices, limiting production, or dividing markets, which helps them maintain high prices. The noncooperative equilibrium, where firms act independently and compete against each other, is known as competition.

Cooperation Between Businesses to Hold Prices High Is Known as _______