Collusion occurs when firms work together to make decisions about price and quantity, typically with the goal of increasing their profits by reducing competition. This is often illegal and can lead to antitrust investigations and lawsuits. The other options do not accurately describe collusion.

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Collusion Is

Question 140

Multiple Choice

Collusion is:

A) the act of firms working together to make decisions about price and quantity.
B) buyers acting in unison against a company in efforts to change its practices.
C) the act of firms undercutting one another in competition until zero profits are earned.
D) None of these statements is true.

Correct Answer: