Overt Collusion Exists If

question 136

Multiple Choice

Overt collusion exists if:

• A) firms agree openly on price, output, and other decisions aimed at achieving monopoly profits.
• B) smaller firms in an industry tacitly agree to charge the same price as the largest firm.
• C) competition among a large number of small firms generates a stable market price.
• D) competition among a large number of small firms generates similar, but slightly different, prices.

---

Definitions:

Uber

A multinational ride-hailing company that offers services including peer-to-peer ridesharing, ride service hailing, and a food delivery app.

Wages

Payments made to employees for their labor or services, typically calculated on an hourly, daily, or piecework basis.

Income Effect

How a shift in income, whether for an individual or an economy, influences the amount of a good or service that is requested.

Leisure

Free time when one is not working or occupied, offering the opportunity for rest, recreation, or other personal activities.