Use the figure to answer the following question.
Treehoppers (a type of insect) produce honeydew, which ants use for food. Treehoppers have a major predator, the jumping spider. Researchers hypothesized that the ants would protect the treehoppers from the spiders. In an experiment, researchers followed study plots with ants removed from the system and compared them to a control plot. From the figure, what can you conclude?
Definitions:
Covert Collusion
An indirect or secret agreement among competitors to engage in anti-competitive behaviors, such as price-setting, that is not openly acknowledged or visible to regulatory authorities or the public.
Herfindahl-Hirschman Index
A measure of market concentration used to determine the level of competition within industries.
Kinked Demand Curve
A perceived market demand curve that suggests prices will rapidly decrease if a firm raises its prices above those of its competitors, but will not increase significantly if the firm lowers prices.
Marginal Revenue
The additional income received from selling one more unit of a good or service, crucial for decision-making regarding output levels.
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