An Unwritten, Unspoken Agreement Through Which Firms Limit Competition Among

question 170

Multiple Choice

An unwritten, unspoken agreement through which firms limit competition among themselves is:

• A) satisficing.
• B) tacit collusion.
• C) overt collusion.
• D) a cartel.

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Definitions:

Short-term Creditor

A creditor that provides loans or credit to a business or individual with an expectation of repayment within a short period, typically less than a year.

Liquidity

The ability of an asset to be quickly converted into cash without losing its value.

Basic Earnings Per Share

A financial indicator that measures the net income generated per outstanding stock share.