When firms openly agree on price and output and they jointly make other decisions aimed at achieving monopoly profits, those firms are practicing:
A)overt collusion.
B)tacit collusion.
C)leadership price.
D)competitive game.

Question

Quizplus · Accepted Answer

Overt collusion refers to when firms openly agree on price and output and jointly make other decisions aimed at achieving monopoly profits. This is done through explicit agreements and communication between the firms, which is illegal under antitrust laws. Tacit collusion, on the other hand, refers to when firms indirectly coordinate their actions without explicit communication or agreements. Leadership price and competitive game are not terms used to describe collusion.

When Firms Openly Agree on Price and Output and They