ECONOMICS (CBSE/UGC NET)

Detailed explanation-1: -Collusion occurs when oligopoly firms make joint decisions, and act as if they were a single firm. Collusion requires an agreement, either explicit or implicit, between cooperating firms to restrict output and achieve the monopoly price.

Detailed explanation-2: -collusion – an illegal agreement among firms to divide the market, set prices, or limit production.

Detailed explanation-3: -Price fixing is an agreement (written, verbal, or inferred from conduct) among competitors to raise, lower, maintain, or stabilize prices or price levels. Generally, the antitrust laws require that each company establish prices and other competitive terms on its own, without agreeing with a competitor.

Detailed explanation-4: -An agreement among firms over production and price is called a collusion and the group of firms acting in unison is called a cartel. Once a cartel is formed, the market is in effect served by a monopoly.

Detailed explanation-5: -"The Three Types of Collusion: Fixing Prices, Rivals, and Rules” by Robert H.