Two Firms Would Sometimes Be Better Off If They Got

question 20

Multiple Choice

Two firms would sometimes be better off if they got together and agreed to charge a high price, rather than to compete and risk having to charge a lower, competitive price.What is the greatest deterrent to this strategy?

• A)The firms may find that the price they charge is greater than the price that would maximize their profits.
• B)An agreement by firms to charge high prices is illegal. The government can fine the firms and send their managers to jail.
• C)Consumers may resent having to pay high prices and not buy from either of the firms.
• D)One of the firms may decide to lower its price and take business away from the firm that charged the high price.

---

Definitions:

Standard Input

A predefined stream in many programming languages that typically reads input from the keyboard or main input device.

C

This language is built for various computing needs, offering procedural coding techniques, enabling the use of structured programming, variable scope determined lexically, and allowing for recursion.

Standard Input

A predefined stream in programming through which data is received from the user or another input source.

C++

A high-level programming language with object-oriented, imperative, and generic programming features.