Firms that consciously make price and output decisions in order to reduce competition may be engaging in what the courts call ________.
A)conspicuous consumption
B)conscious parallelism
C)predatory action
D)coalitionary action

Question

Quizplus · Accepted Answer

Conscious parallelism refers to firms making pricing and output decisions to avoid competition with each other. Predatory action refers to firms engaging in anti-competitive behavior to eliminate rivals, while coalitionary action refers to firms colluding to manipulate prices and output levels. Conspicuous consumption refers to consumers purchasing luxury goods to display their wealth or status.

Firms That Consciously Make Price and Output Decisions in Order