There are a few firms in the automobile industry in Zadmia.To prevent a price war,these firms have secretly agreed to charge a price 20 percent above the marginal cost of production.This is an example of ________.

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The agreement between the firms to charge a price 20 percent above the marginal cost of production is an example of collusion - when firms secretly agree to work together to achieve a shared goal. In this case, the shared goal is to prevent a price war and ensure that each firm earns a profit at a slightly higher price point.

There Are a Few Firms in the Automobile Industry in Zadmia.To