Author Question: There are a few firms in the automobile industry in Poorland. In order to prevent a price war, these ... (Read 31 times)

Lobcity · **on:** Jun 29, 2018

There are a few firms in the automobile industry in Poorland. In order to prevent a price war, these firms have secretly agreed to charge a price 20 above the marginal cost of production. This is an example of ________.

A) free riding
B) undercutting
C) collusion
D) cost-cutting

Question 2

The optimal bidding strategy in a first-price sealed-bid auction is identical to the optimal bidding strategy in a(n) ________ auction.

A) open-outcry English
B) open-outcry Dutch
C) second-price sealed-bid
D) dollar