In an Oligopolistic Market Structure, Collusion Between Firms Usually Leads

question 100

Multiple Choice

In an oligopolistic market structure, collusion between firms usually leads to higher profits than noncooperative behavior.However, formal, overt collusion doesn't usually occur in the United States because:

• A)it is illegal.
• B)there is an incentive for each firm to cheat on a collusive agreement.
• C)an oligopolistic firm will typically prefer lower profits if the only way to make higher profits is to improve the profit position of its rivals.
• D)it is illegal and because there is an incentive for each firm to cheat on a collusive agreement.

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Definitions:

Operant Chambers

Enclosures used to study animal behavior through operant conditioning, featuring mechanisms for delivering reinforcements and punishments.

Conditioned Stimulus

A previously neutral stimulus that, after being paired with an unconditioned stimulus, evokes a conditioned response.

Operantly Conditioned

A type of learning in which the strength of a behavior is modified by the behavior's consequences, such as reward or punishment.

Positive Reinforcement

A process in psychology that involves the addition of a stimulus after a behavior that makes the behavior more likely to occur again.