Which of the Following Conditions Would Increase the Likelihood of Successful

question 118

Multiple Choice

Which of the following conditions would increase the likelihood of successful collusion among American automobile producers?

• A) vigorous enforcement of antitrust laws
• B) strong quality competition that makes it difficult to monitor price cuts by rival firms
• C) imposition of tariffs or quotas on imported automobiles
• D) The market demand for automobiles fluctuates substantially.

---

Definitions:

Invisible Hand

A term coined by Adam Smith to describe the self-regulating behavior of the marketplace, where individual self-interests inadvertently contribute to the economy's overall health.

Childcare Center

A facility that provides care and education to young children during the working hours, facilitating parental employment.

Profitable

Describing a business or activity that generates more revenue than it costs to operate, resulting in a financial gain.

Centrally Planned Economies

Economic systems where decisions about production, investment, and distribution are made by the government rather than the market.