Collusion Is Most Likely to Occur When

question 98

Multiple Choice

Collusion is most likely to occur when

• A)there are many firms in an industry.
• B)firms participate in a market sporadically.
• C)firms compete and interact over a long period of time.
• D)it is difficult to obtain information about other firms.
• E)firms have very little information about each other.

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Definitions:

Direct Labor-Hours

The cumulative amount of time employees spend specifically on the creation of goods or services.

Variable Overhead

Costs that fluctuate with production volume, such as utilities or indirect materials, which are not directly tied to any single product.

Direct Materials

Basic substances that can be directly linked to the manufacture of particular products or services.

Direct Labor-Hours

A measure of the amount of time workers spend on a particular job or production process, used to assign labor costs to units of output.