Which of the Following Statements About Collusion Istrue

question 51

Multiple Choice

Which of the following statements about collusion istrue?

• A)Collusion is legal in the United States.
• B)Its overriding goal is to enhance competition and thereby increase profits.
• C)The greater the number of firms,the less difficult it is to maintain.
• D)Collusion never results in benefits for the participants.
• E)Collusion may help to increase the profits of the participating firms.

---

Definitions:

Taxable Income

The portion of an individual's or corporation's income that is subject to taxes according to federal, state, or local laws.

Tax Liability

The total amount of tax that an individual or business owes to the government.

Average Tax Rate

The proportion of total income that is paid as taxes, calculated by dividing the total amount of taxes paid by the total income.

Elastic Supply

A situation where the quantity supplied of a good responds significantly to changes in its price.