When Producers Agree to Restrict Output, Raise the Price, and Increase

question 19

Multiple Choice

When producers agree to restrict output, raise the price, and increase profits, the agreement is called ________.

• A) a pricing agreement
• B) an oligopoly agreement
• C) a collusive agreement
• D) a monopoly agreement

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Definitions:

Certification Process

A process under labour legislation whereby a trade union acquires bargaining rights and is designated as the exclusive bargaining representative of a unit of employees.

Bargaining Rights

The rights granted to entities, often unions, to negotiate the terms of employment, including wages and working conditions, on behalf of a group of employees.

Exclusive Bargaining

A process in labor relations where a single union is designated as the representative of all employees in negotiating with the employer.

Severance Pay

Compensation paid by an employer to an employee who has been laid off or terminated, not due to misconduct.