Collusion occurs when firms ________

A) charge a price equal to their marginal cost of production
B) conspire to set the quantity they produce or the prices they charge
C) compete with each other by setting a price slightly lower than the rival's price
D) compete with each other by differentiating their products

B

Economics

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When the percentage change in quantity supplied is greater than the percentage change in price, supply is said to be elastic

Indicate whether the statement is true or false

Economics

Moving down a straight-line demand curve, the absolute price elasticity of demand

A) increases. B) is constant. C) decreases. D) varies in uncertain ways.

Economics