There Exists an Incentive to Cheat on a Collusive Agreement

question 80

Multiple Choice

There exists an incentive to cheat on a collusive agreement as long as

• A)price equals marginal cost.
• B)price equals marginal revenue.
• C)price exceeds marginal cost.
• D)price is above minimum average total cost.
• E)none of the above.

---

Definitions:

Disinhibition

The reduction or removal of inhibition, resulting in an increase in previously suppressed behaviors or actions.

Sensitization

An increased response to a stimulus following repeated exposure, usually associated with adverse or noxious stimuli.

Habituation

A learning process where an organism reduces its responsiveness to a non-threatening stimulus over time through repeated encounters.

Stimuli

External or internal events that elicit a response from an organism.