Collusion is the ability of a group of firms to work together to increase competition in their market or industry.

Question

Quizplus · Accepted Answer

Collusion is actually the opposite of increasing competition. It is an illegal practice where firms work together to reduce competition and achieve higher prices or profits by setting prices, output levels, or market shares. Collusion is also known as cartelization and is strictly prohibited by antitrust laws.

Collusion Is the Ability of a Group of Firms to Work