Collusion

question 250

Multiple Choice

Collusion

• A)is rampant in perfect competition as all firms charge the same price.
• B)reduces market concentration in an industry.
• C)among firms is difficult to maintain because it eliminates long-run economic profit.
• D)is more difficult when there are many firms producing differentiated products in an industry.

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Definitions:

Ingroup Bias

The inclination to prefer individuals from one's own group above those from outsider groups, frequently resulting in bias and unfair treatment.

Free Riders

Individuals or entities that benefit from resources, goods, or services without paying for them or contributing to their provision.

Common Resource

A type of good that is accessible to all members of a community or society but is susceptible to overuse and depletion.

Disjunctive Tasks

Tasks in which the performance of the group is determined by the performance of the best individual member.