If firms meet together to decide on prices and outputs, there is
A)overt collusion.
B)tacit collusion.
C)price leadership.
D)None of the above are correct.

Question

Quizplus · Accepted Answer

Overt collusion refers to when firms explicitly agree to cooperate in setting prices and outputs. This is in contrast to tacit collusion, which occurs when firms coordinate their actions without explicit agreement. Price leadership refers to a situation where one dominant firm sets the price and others follow. Neither of these options accurately describes the scenario presented in the question.

If Firms Meet Together to Decide on Prices and Outputs