_____ occurs when the only two firms in an industry openly agree to fix the price at a given level.
A) Overt collusion
B) Price leadership
C) Contestability
D) Tacit collusion

Question

Quizplus · Accepted Answer

Overt collusion occurs when firms openly agree to set prices or output levels, as opposed to tacit collusion where firms indirectly coordinate actions without explicit agreement.

_____ Occurs When the Only Two Firms in an Industry