Which of the following statements about collusion is true?
a. Collusion is legal in the United States.
b. Its overriding goal is to enhance competition and thereby increase profits.
c. The greater the number of firms, the less difficult it is to maintain a collusion.
d. Collusion never results in benefits for the participants.
e. Collusion may help to increase the profits of the participating firms.
e
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How might the globalization of financial markets affect the role of financial frictions in business fluctuations?
What will be an ideal response?
If the government wants to raise tax revenue and shift most of the tax burden to the sellers it would impose a tax on a good with a:
A. flat (elastic) demand curve and a steep (inelastic) supply curve. B. steep (inelastic) demand curve and a flat (elastic) supply curve. C. steep (inelastic) demand curve and steep (inelastic) demand curve. D. flat (elastic) demand curve and a flat (elastic) supply curve.