What is an agreement among firms to charge the same price or otherwise not to compete?

Question

Quizplus · Accepted Answer

Collusion refers to an agreement among firms to set the same price or otherwise not to compete. This is a violation of antitrust laws, as it leads to decreased competition and higher prices, ultimately harming the consumer. The other options, such as payoff matrix, subgame-perfect equilibrium, and Nash equilibrium, are tools used to analyze strategic interactions between firms, but they do not directly relate to collusion.

What Is an Agreement Among Firms to Charge the Same