When Firms Openly Agree on Price, Output, and Other Decisions

question 102

Multiple Choice

When firms openly agree on price, output, and other decisions aimed at achieving monopoly profits, those firms are practicing:

• A) overt collusion.
• B) tacit collusion.
• C) leadership price.
• D) competitive game.

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Definitions:

Internal Consistency Reliability

A measure of how well the items on a test measure the same construct or concept.

Content Validity

The extent to which a test measures all facets of the concept it is intended to assess.

External Validity

The extent to which the results of a study can be generalized to other situations, populations, or settings.

Alternate Form Reliability

A measure of consistency where different versions of a test produce similar results, indicating the test’s reliability over time.