A firm might be tempted to cheat on a collusive price-fixing agreement by setting a ________ price and producing ________ than agreed upon.
A) lower; more
B) lower; less
C) higher; more
D) higher; less

Question

Quizplus · Accepted Answer

By setting a lower price and producing more than agreed upon, a firm can attract more customers and increase its market share, thus gaining more profit at the expense of the collusive agreement.

A Firm Might Be Tempted to Cheat on a Collusive