When Firms in an Industry Jointly Make Pricing and Output

question 37

Multiple Choice

When firms in an industry jointly make pricing and output decisions, they are

• A) dumping.
• B) colluding.
• C) arbitrating.
• D) regulating.
• E) trying to irritate the government.

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Definitions:

Master Of His Offer

This implies that the individual making an offer has complete control over the terms until it is accepted.

Offeror

The party in a contractual agreement who presents an offer to another party (the offeree) to enter into a contract, which may be accepted or rejected.

Formal Contracts

Legally binding agreements that are required to be in writing, often solemnized by the presence of certain formalities.

Under Seal

A legal term indicating that a document or case is officially confidential and not to be made public without authorization.