Which of the following is an example of collusion?
A) Nike and Reebok compete on price.
B) Dell and Gateway compete on quantity.
C) American Airlines and United Airlines agree to raise prices.
D) Coca-Cola and Pepsi do not attempt to fix prices.
E) Verizon builds more cell phone towers.

Question

Quizplus · Accepted Answer

Collusion refers to an agreement or understanding between firms to limit competition, often involving price fixing or market sharing. American Airlines and United Airlines agreeing to raise prices would be an example of collusion.

Which of the Following Is an Example of Collusion