The Firms in a Market Have Decided Not to Compete

question 90

Multiple Choice

The firms in a market have decided not to compete with one another and have agreed to limit output and raise price.

• A) This practice is known as concentrating and is legal in the United States and Canada.
• B) This practice is known as collusion and is illegal in the United States.
• C) In this way firms take advantage of economies of scale.
• D) This is an effective barrier to entry, but is illegal in the United States.

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Definitions:

Political Skill

Refers to the ability to understand and influence others in a way that promotes personal or organizational objectives.

Expert Power

The ability to influence others based on the possession of knowledge, skills, or expertise that is recognized and respected.

Politics

Activities associated with governing, decision-making in organizations, or the exercise of authority in complex systems of relationships.

Job Performance

The extent to which an employee carries out their tasks and duties effectively, efficiently, and to the satisfaction of their superiors.