Which of the Following Is True Regarding Tacit Collusion

question 1

Multiple Choice

Which of the following is true regarding tacit collusion?

• A)It is an informal, unstated agreement.
• B)It is more likely to occur when the price elasticity of demand is large.
• C)It is illegal.
• D)It is more likely to occur when barriers to entry are low.

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Definitions:

Fair Labor Standards Act

U.S. federal law that establishes minimum wage, overtime pay eligibility, recordkeeping, and child labor standards affecting full-time and part-time workers in the private sector and in Federal, State, and local governments.

Interstate Commerce

Commercial transactions or movement of goods and services across state boundaries, which is regulated by the federal government.

COBRA

A law that provides former employees, retirees, spouses, former spouses, and dependent children the right to temporary continuation of health coverage at group rates.

Substantially Reduced

Significantly decreased in amount, size, extent, or degree.