What are the possible benefits of collusion to a firm?
What will be an ideal response?
Collusion occurs when firms conspire to set the quantity they produce or the prices they charge, rather than competing on these dimensions. Colluding firms act like a monopoly and then split the monopoly profit. Therefore, a firm entering into a collusive agreement can earn higher profits.
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Frictional unemployment is often the result of changes in the demand for labor among different firms
a. True b. False Indicate whether the statement is true or false
The exchange rate is the
A. Balance-of-trade ratio of one country to another. B. Opportunity cost at which goods are produced domestically. C. Amount of currency that can be purchased with one ounce of gold. D. Price of one country's currency expressed in terms of another country's currency.