ECONOMICS
COMPETITION AND MARKET STRUCTURES
|
Question
[CLICK ON ANY CHOICE TO KNOW THE RIGHT ANSWER]
|
|
|
Collusion
|
|
|
Price discrimination
|
|
|
Either A or B
|
|
|
None of the above
|
Detailed explanation-1: -A cartel is a collection of independent businesses or organizations that collude to manipulate the price of a product or service. Cartels are competitors in the same industry and seek to reduce that competition by controlling pricing in agreement with one another.
Detailed explanation-2: -"The Three Types of Collusion: Fixing Prices, Rivals, and Rules” by Robert H.
Detailed explanation-3: -A group of firms that have a formal agreement to collude to produce the monopoly output and sell at the monopoly price is called a cartel.
Detailed explanation-4: -There are two types of collusion tacit collusion and explicit collusion. The tacit technique employs various methods to achieve results, the most popular being price leadership. The other type is explicit collusion, where businesses openly coordinate to agree on collusive methods.
Detailed explanation-5: -Collusion refers to a situation where firms work together in order to influence the entire market. Price fixing is a common method of colluding so, in an oligopoly market structure, such practices are made.