Unwritten or Unspoken Understandings Through Which Firms Collude to Restrict

question 177

Multiple Choice

Unwritten or unspoken understandings through which firms collude to restrict competition are called:

• A) cartelization.
• B) oligopolization.
• C) overt collusion.
• D) tacit collusion.

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Definitions:

Price Elasticity of Demand

A study of how price developments influence the demand proportions for a commodity.

Income Elasticity of Demand

An indicator of the variation in demand for a product or service resulting from alterations in buyers' income levels.

Perfectly Inelastic

A situation in demand where the quantity demanded does not change in response to a change in price.

Insulin

A hormone produced by the pancreas that regulates blood glucose levels by facilitating the uptake of glucose into tissues, used medically to treat diabetes.