When collusion occurs, sellers in a market
A)legally join together to become one seller.
B)collide by trying to serve the same segment of the market.
C)act like a monopolist to increase profits.
D)strive to increase the level of competition in the market.

Question

Quizplus · Accepted Answer

When collusion occurs, sellers come together to act like a monopolist to increase profits. They agree to limit production or raise prices to increase profits as if they were a monopoly. Collusion is illegal and is seen as anti-competitive behavior.

When Collusion Occurs, Sellers in a Market