The practice of a group of firms negotiating a uniform price and fixing agreed-upon market share in order to limit competition is
A) legal in all states but illegal in Washington, D.C.
B) called conglomerate behavior
C) seldom successful because entry into the industry cannot be denied
D) called collusion
E) less profitable for each firm than maximizing profit individually

Question

Quizplus · Accepted Answer

Collusion is the correct term for the practice where firms agree on prices or market shares to limit competition. This is often illegal and against antitrust laws in many jurisdictions.

The Practice of a Group of Firms Negotiating a Uniform