Airline A and Airline B are the two largest airlines in the country.The chief executive officer of Airline A calls the chief executive officer of Airline B and says,"Why don't we both raise prices 25% across the board next week?" This is an example of:
A) spirited competition.
B) an attempt to collude.
C) predatory pricing.
D) a corporate merger.
E) a tying arrangement.

Question

Quizplus · Accepted Answer

The conversation between the two chief executive officers suggests an attempt to collude, which is an illegal practice where companies agree to fix prices to limit competition and increase profits.

Airline a and Airline B Are the Two Largest Airlines