In which of the following situations does overt collusion take place?
A) Smaller firms in an industry have an unspoken agreement to charge the same price as the largest firm.
B) Firms in an industry agree openly on price and output, and they jointly make other decisions aimed at achieving monopoly profits.
C) Competition among a large number of small firms generates similar but slightly different prices.
D) Competition among a large number of small firms generates a stable market price.

Question

Quizplus · Accepted Answer

Overt collusion occurs when firms openly agree on prices and output levels to maximize joint profits, often resembling a monopoly.

In Which of the Following Situations Does Overt Collusion Take