Collusion occurs when:________
A) firms refuse to follow their price leaders.
B) a firm chooses a level of output to maximize its own profit.
C) there is an agreement among firms to charge the same price or otherwise not to compete.
D) two firmsʹ price and output decisions come into conflict.

To begin with, the term known as "Collusion", in the field of microeconomics and business, refers to the situation where two o more firms decide to actually "work" together by keeping the same amount of quantity and the same price in the market as the most common way to do a collusion. Moreover, the major purpose of this is to increase the amount of benefits among those companies that work in the same industry and that is why they actually decide to colaborate with each other or not compete at all.

Martebi Martebi · Answer 2 · 2021-12-16T09:54:04+01:00

There are different ways firms maximize profits. Collusion occurs when firms get together to maximize joint profits.

Collusion is simply known as the mixing up of conspiracies or agreements among sellers so as to raise or fix prices and to lower output so as to increase profits.

It also takes place when rival firms agree to work together. Example is placing higher prices in order to get greater profits. By coming together to make profit, firms often has collision.

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Collusion occurs when:________ A) firms refuse to follow their price leaders. B) a firm chooses a level of output to maximize its own profit. C) there is an agreement among firms to charge the same price or otherwise not to compete. D) two firmsʹ price and output decisions come into conflict.

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Collusion occurs when:________
A) firms refuse to follow their price leaders.
B) a firm chooses a level of output to maximize its own profit.
C) there is an agreement among firms to charge the same price or otherwise not to compete.
D) two firmsʹ price and output decisions come into conflict.