Collusion among firms to form a cartel refers to
A) joint ventures in producing new goods, such as France and England colluding to produce the European Airbus as a viable competitor to the U.S. Boeing's 747
B) joint ventures between business and government, such as the exploration of space
C) joint ventures between a domestic firm and a foreign firm, such as in the mega- movies of the entertainment world
D) the practice among firms of preventing other firms from entering the industry
E) the practice among firms of agreeing to abide by the group decision on price and output

Question

Quizplus · Accepted Answer

Collusion among firms to form a cartel specifically refers to the practice where firms agree to coordinate their prices and output levels to maximize collective profits, rather than competing against each other. This is distinct from joint ventures or efforts to prevent new firms from entering the market.

Collusion Among Firms to Form a Cartel Refers to