Explicit Collusion in an Oligopolistic Industry

question 18

Multiple Choice

Explicit collusion in an oligopolistic industry

• A)occurs when firms achieve the cooperative outcome without an explicit agreement.
• B)is a form of predatory pricing.
• C)results in a non- cooperative equilibrium.
• D)occurs when firms make an explicit agreement to cooperate.
• E)results in competitive behaviour.

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Definitions:

Unrealistic Performance

Expectations or goals that are not achievable given current circumstances or abilities.

Immediate Imitation

entails copying someone's behavior or actions instantly upon observation, without any delay or consideration.

Self-Esteem

An individual's subjective evaluation of their own worth, encompassing beliefs about oneself as well as emotional states such as triumph, despair, pride, and shame.

Incentive

A thing that motivates or encourages someone to do something, often utilized in psychology and economics to understand decision-making processes.