Which of the Following Is NOT a Way to Create

question 33

Multiple Choice

Which of the following is NOT a way to create economic profits via collusion?

• A)Colluding to increase the bargaining power of buyers.
• B)Colluding to reduce the threat of new competitors.
• C)Colluding to reduce the threat of current competitors.
• D)Colluding to reduce supplier leverage threats.

---

Definitions:

Warranties

Guarantees provided by the seller or manufacturer, asserting that a product will meet specified criteria of performance over a certain period, and offering remedies in case of failure.

Moral Hazard

A situation where one party engages in risky behavior or fails to act in good faith because another party bears the consequences of that behavior, often seen in insurance and financial sectors.

Incentives

Incentives or disincentives that encourage people or organizations to behave in specific manners.

Insurance Premiums

The amounts paid for insurance coverage, typically charged monthly or annually, to maintain the insurance policy.