An Agreement in Which Competitors Agree in Advance Who Will

question 68

True/False

An agreement in which competitors agree in advance who will win a bid based on the tenders submitted is an unethical practice known as bid rigging.

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Definitions:

Monopoly Markets

Markets dominated by a single seller, leading to less competition and higher prices for consumers.

Government Intervention

Actions taken by a government to affect the economy, which can include regulations, subsidies, tariffs, and fiscal or monetary policies.

Deadweight Loss

The reduction in economic productivity that happens when a good or service does not reach or cannot reach its equilibrium state.

Natural Monopoly

A market condition where a single firm can provide a good or service at a lower cost than any competitors, due to economies of scale.