Which of the following is NOT an instance of collusion?.
A)General Motors and Ford Motor Company forming a strategic alliance to make electric cars.
B)Members of OPEC agreeing to reduce oil shipments in 1973.
C)Coca-Cola's decision to focus on the Western European market and Pepsi's decision to focus on the Russian market.
D)General Electric's decision to focus on large electric generation turbines and Westinghouse's decision to focus on small electric generation turbines.

Question

Quizplus · Accepted Answer

The formation of a strategic alliance between General Motors and Ford Motor Company to make electric cars is not an instance of collusion as it is a legal and cooperative agreement between two companies to achieve a common goal. Collusion refers to secret and illegal cooperation between competitors to manipulate market outcomes for their own benefit.

B, C, and D are instances of collusion as they involve agreements between competitors to limit competition, allocate markets, or manipulate prices.

Which of the Following Is NOT an Instance of Collusion