When Does Collusion Between Two Firms Occur

question 149

Multiple Choice

When does collusion between two firms occur?

• A)The firms independently pursue strategies that could hurt each other.
• B)The firms explicitly or implicitly agree to adopt a uniform business strategy.
• C)The firms announce that each will match its rival's market price.
• D)The firms act altruistically to bring about the economically efficient outcome.

---

Definitions:

Aggression

Behavior aimed at causing harm or pain to others, often motivated by anger or frustration.

Sensory Control Center

A term that refers to the parts of the brain responsible for processing sensory information from the environment.

Oldest Regions

refers to the most ancient parts of the brain, such as the brainstem and cerebellum, which govern fundamental life functions like breathing, heart rate, and motor coordination.

Breathing

The process of taking air into and expelling it from the lungs, vital for the exchange of oxygen and carbon dioxide.