When producers agree to restrict output, raise the price, and increase profits, the agreement is called _______.
A) an oligopoly agreement
B) a collusive agreement
C) a monopoly agreement
D) a pricing agreement

Question

Quizplus · Accepted Answer

A collusive agreement is when producers agree among themselves to restrict output, raise prices, and increase profits, often in violation of antitrust laws. This is distinct from oligopoly, monopoly, or general pricing agreements, which describe market structures or broader pricing strategies rather than specific illegal or anti-competitive agreements.

When Producers Agree to Restrict Output, Raise the Price, and Increase