An Oligopolistic Firm That Is Part of a Collusive Agreement

question 165

Multiple Choice

An oligopolistic firm that is part of a collusive agreement is less likely to cheat

• A)the more punishment it expects if the cheating is detected
• B)the lower is the possibility of detection
• C)the less likely is the collapse of the entire agreement as a result of cheating
• D)the greater is the additional profit from charging a lower price than the other firms
• E)the higher is the chance of taking customers away from competitors by charging a lower price

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Definitions:

Contain Threats

The process of identifying, assessing, and reducing threats to minimize their impact.

Establish Expertise

The process of demonstrating or gaining recognition for one's skill and knowledge in a particular area.

Determine Belief

The process of identifying or establishing what one accepts as true or real, often in the context of preparing for negotiations or critical thinking.

Recency Effect

A cognitive bias that causes people to remember the most recently presented information best, which can influence decision-making and opinions.