Collusive action among producers creates higher prices for consumers because it:
A) causes overproduction and inefficiency.
B) creates negative externalities.
C) forces producers to be more competitive.
D) allows producers to artificially restrict their supply.

Question

Quizplus · Accepted Answer

Collusive action among producers allows them to artificially restrict their supply, which reduces the overall supply in the market and causes prices to increase. This harms consumers by making them bear the brunt of the increased prices.

Collusive Action Among Producers Creates Higher Prices for Consumers Because