Collusion occurs when firms ________. A) charge a price equal ...

[vicky]

Collusion occurs when firms ________.
 
  A) charge a price equal to their marginal cost of production
  B) conspire to set the quantity they produce or the prices they charge
  C) compete with each other by setting a price slightly lower than the rival's price
  D) compete with each other by differentiating their products

Question 2

Firms are not likely to include their sunk costs when calculating their true cost of supplying goods if they
 
  A) are calculating their income for tax purposes.
  B) have been accused by competitors of dumping.
  C) have been accused by customers of price gouging.
  D) must request price increases from a regulatory commission.
  E) want subsidies from the government.

[batool]

Answer to Question 1

B

Answer to Question 2

B

[vicky]

Excellent

[kswal303]

Thanks for the timely response, appreciate it