An Oligopolistic Firm That Is Part of a Collusive Agreement

question 165

Multiple Choice

An oligopolistic firm that is part of a collusive agreement is less likely to cheat

• A)the more punishment it expects if the cheating is detected
• B)the lower is the possibility of detection
• C)the less likely is the collapse of the entire agreement as a result of cheating
• D)the greater is the additional profit from charging a lower price than the other firms
• E)the higher is the chance of taking customers away from competitors by charging a lower price

---

Definitions:

Psychodynamic Perspective

A theoretical framework in psychology that emphasizes the role of unconscious processes and childhood experiences in shaping behavior and personality.

Aggression

Behaviors or actions carried out with the intent to harm someone either physically or psychologically, often manifested as a response to frustration or threat.

Unconscious

A part of the mind that is inaccessible to the conscious mind but that affects behavior and emotions.

Electra Complex

A psychoanalytic theory describing a girl's sense of competition with her mother for the affection and attention of her father.