When officers of firms in an industry get together to discuss how they can improve their mutual well-being, the result is

Question

Quizplus · Accepted Answer

When officers from different firms in the same industry come together to improve their mutual well-being by setting prices, controlling output or dividing the market among themselves, it is known as collusion. This practice is illegal as it eliminates competition and gives the firms involved an unfair advantage in the market.

When Officers of Firms in an Industry Get Together to Discuss