If the Only Two Firms in an Industry Agree to Fix

question 82

Multiple Choice

If the only two firms in an industry agree to fix the price at a given level, this is an example of:

• A) collusion.
• B) satisfying.
• C) price extortion.
• D) price leadership.

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Definitions:

Social Bonding

The process of development and maintenance of close and meaningful relationships between individuals.

Bloodstream

The bloodstream is the system of blood vessels (arteries, veins, and capillaries) through which blood circulates throughout the body, delivering oxygen and nutrients to tissues and removing waste products.

Pituitary

A pea-sized gland located at the base of the brain, often called the "master gland," because it regulates vital body functions and the activity of other glands.

Hypothalamus

An area located beneath the thalamus in the brain responsible for managing the autonomic nervous system and pituitary gland functions, overseeing the regulation of body temperature, hunger, thirst, and various other systems that maintain equilibrium in the body.