Tacit Collusion Occurs When Price- and Quantity-Fixing Agreements Among Producers

question 83

Multiple Choice

Tacit collusion occurs when price- and quantity-fixing agreements among producers

• A) are implicit.
• B) are explicit.
• C) are nonexistent.
• D) are legal.

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Definitions:

Net Benefit

The total positive impact of a decision or action, subtracting any costs or negative effects associated with it.

Trade

The exchange of goods, services, or both between parties, which can occur domestically or internationally.

Perfectly Competitive Market

A market structure characterized by many sellers and buyers, homogeneous products, and the free entry and exit of firms, leading to efficient outcome prices.

Society

A group of individuals living together in a more or less ordered community, often sharing common cultural and social norms.