When Firms Act as If They Had an Agreement This

question 39

Multiple Choice

When firms act as if they had an agreement this is called:

• A) explicit quotas
• B) tacit collusion
• C) a cartel
• D) oligopoly

---

Definitions:

Majority Of States

Refers to more than half of the 50 states in the United States.

Duty Of Care

A legal obligation to ensure the safety or well-being of others, which can arise in various contexts such as professional services or public activities.

Honest Error

A mistake made without malicious intent or knowledge of its falsehood, often considered in legal and ethical considerations.

Underestimating Cost

The act of calculating or predicting a cost to be lower than it eventually turns out to be.