Alto and Saxon are two oligopolists that hold most of the market power in the bottled water industry. Which of the following actions shows that collusion is occurring?
a. Alto and Saxon agree to merge to increase their market power.
b. Alto suffers a sales loss after Saxon lowers its prices.
c. Saxon launches an advertising campaign against Alto.
d. Alto and Saxon agree to mutually restrict production to drive up prices.
d. Alto and Saxon agree to mutually restrict production to drive up prices.
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Self-interest relates to
A) only monetary objectives. B) both monetary and nonmonetary objectives. C) the ceteris paribus assumption. D) normative economic analysis and not positive economic analysis.
Refer to the diagram. Other things equal, a leftward shift of the supply curve would:
The following diagram is a flexible exchange market for foreign currency:
A. appreciate the euro.
B. cause a shortage of euros.
C. increase the equilibrium quantity of euros.
D. appreciate the dollar.