________ Refers to Value Achieved Through the Combination of Market

question 52

Multiple Choice

________ refers to value achieved through the combination of market entry, risk sharing, and learning potential that is greater than what the firm could have done alone.

• A) Shared risk
• B) Shared knowledge
• C) Synergy
• D) Scale economy

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Definitions:

Tacit Collusion

An unspoken, informal agreement among competitors to limit competition, such as by fixing prices or dividing market territories, without explicit communication.

Price Effect

The impact that a change in the price of a good or service has on consumers' demand for that good or service.

Output

The quantity of goods or services produced in a given time period.

Cartels

Formal agreements among competing firms in the same industry aimed at controlling production, fixing prices, and restricting competition.