If the Only Two Firms in an Industry Agree to Fix

question 82

Multiple Choice

If the only two firms in an industry agree to fix the price at a given level, this is an example of:

• A) collusion.
• B) satisfying.
• C) price extortion.
• D) price leadership.

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Definitions:

Horizontal Axis

In a graph or chart, the x-axis, which typically represents the independent variable or time scale.

Total Economic Profit

Total economic profit is the difference between a firm's total revenues and its total costs, including both explicit and implicit costs.

Profitable Level

Refers to the point at which a business or operation generates revenue exceeding its costs, leading to financial gain.

Output

is the total amount of goods and services produced by an economy, firm, or production process.