Overt collusion exists if:
A) firms agree openly on price and output and they jointly make other decisions aimed at achieving monopoly profits.
B) smaller firms in an industry tacitly agree to charge the same price as the largest firm.
C) competition among a large number of small firms generates a stable market price.
D) competition among a large number of small firms generates similar but slightly different prices.

Question

Quizplus · Accepted Answer

Overt collusion occurs when firms explicitly agree on prices and output levels to maximize joint profits, similar to a monopoly.

Overt Collusion Exists If