Firms Engage in Explicit Collusion When

question 12

Multiple Choice

Firms engage in explicit collusion when

• A) They predict what the other will do and attempt to undercut them
• B) They collude without communicating, sustaining a price above the noncooperative price that would arise in a single competitive interaction
• C) They communicate to reach an agreement about the prices they will charge
• D) They communicate what type of good they will produce

---

Definitions:

Product Development

The comprehensive process of bringing a new product or service to market, from idea generation to commercialization.

Interrelated Factors

Elements or conditions that influence one another in a system or process, where changes in one factor can cause changes in the others.

Drone Photography

The use of drones, or unmanned aerial vehicles (UAVs), to capture images and videos from aerial perspectives.

Test Marketing

The process of testing new products or marketing strategies in a specific geographic area to evaluate potential success before a wider launch.