Which of the following is NOT a way to create economic profits via collusion?
A)Colluding to increase the bargaining power of buyers.
B)Colluding to reduce the threat of new competitors.
C)Colluding to reduce the threat of current competitors.
D)Colluding to reduce supplier leverage threats.

Question

Quizplus · Accepted Answer

Colluding to increase the bargaining power of buyers would not create economic profits for the colluding firms. Rather, it would benefit the buyers, potentially resulting in lower prices and thus lower profits for the colluding firms. The other options, colluding to reduce the threat of new or current competitors or to reduce supplier leverage threats, can all potentially lead to higher prices, greater market share, and thus economic profits for the colluding firms.

Which of the Following Is NOT a Way to Create