When is a collusive agreement between two firms likely to break ...

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When is a collusive agreement between two firms likely to break down?
 
  What will be an ideal response?

Question 2

Health insurance plans which typically reimburse doctors and hospitals with payment for each service they provide are known as
 
  A) single-health-payer systems. B) health maintenance organizations.
  C) fee-for-service plans. D) preferred provider organizations.

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Answer to Question 1

A collusive agreement might break down if either firm cheats and charges a lower price. If the other firm fails to detect it, the firm that lowers its price may be able to capture the entire market.

Answer to Question 2

C