Which of the Following Explains Why Two Firms, Apex and Bongo

question 87

Multiple Choice

Which of the following explains why two firms, Apex and Bongo, would engage in implicit collusion, rather than explicit collusion?

• A) Implicit collusion allows Apex to increase its profits at the expense of Bongo without Bongo knowing that collusion has occurred; if Apex engages in explicit collusion, Bongo will realize collusion has taken place and retaliate against Apex.
• B) Implicit collusion is less costly to both firms than explicit collusion; therefore, profits will be greater for both firms if they engage in implicit collusion.
• C) explicit collusion is illegal; if the managers of Apex and Bongo engage in implicit collusion they may be within the law.
• D) Implicit collusion always has an enforcement mechanism that forces both firms to collude; explicit collusion does not have an enforcement mechanism.

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Definitions:

Behaviour Modelling

A training technique that involves demonstrating desired behaviors and allowing learners to practice and mimic those behaviors.

Credible

Described as being trustworthy or believable in context or information presented.

Trainer

A professional responsible for designing and delivering instructional content to learners, typically in an educational or workplace setting.

Psychological Fidelity

The extent to which a simulation or training environment accurately replicates the psychological aspects of a real-world scenario.