The firms in the petroleum industry of Perylia have decided to cooperate with each other by setting their respective market shares.This is an example of ________ in the petroleum industry.

Question

Quizplus · Accepted Answer

Collusion refers to a secret or illegal cooperation or conspiracy, especially in order to cheat or deceive others. In this case, the firms in the petroleum industry are setting their market shares, which is a collusive practice aimed at controlling prices and maintaining their market power. Cost-cutting, undercutting, and free riding are not applicable in this scenario.

The Firms in the Petroleum Industry of Perylia Have Decided