Two Firms Agree to Set a Single High Price for Their

question 39

Multiple Choice

Two firms agree to set a single high price for their products, and reap high profits. What is the problem here?

• A) One firm is afraid that its profit might fall drastically since it might secretly cut price.
• B) One firm is afraid that its profit might fall drastically since the other might secretly cut price.
• C) One firm is afraid that its profit might fall drastically since the other might raise price.
• D) One firm is afraid that its profit might fall drastically since oil prices may go up.

---

Definitions:

White Blood Cells

A type of blood cell that is part of the immune system and helps the body fight infection and other diseases.

Antigens

Substances that the immune system recognizes as foreign or dangerous, triggering an immune response.

External Locus Of Control

The belief that one's life events are largely determined by forces outside one's control.

Conscientiousness

A personality trait characterized by organization, dependability, and a strong sense of duty.