A secret conversation between the presidents of Bethlehem Steel and USX Steel company to set prices would be an example of:

Question

Quizplus · Accepted Answer

Collusive oligopolistic behavior involves a small number of firms in an industry agreeing to work together to control prices and limit competition. This scenario describes just that – two companies, Bethlehem Steel and USX Steel, engaging in secret conversations to set prices. Monopoly refers to a single firm dominating an industry, while monopolistic competition describes a market with many smaller firms that offer slightly differentiated products. Perfect competition involves many small firms offering identical products and no one firm having any control over the market price.

A Secret Conversation Between the Presidents of Bethlehem Steel and USX