Multiple Choice
Two firms agree to set a single high price for their products, and reap high profits. What is the problem here?
A) One firm is afraid that its profit might fall drastically since it might secretly cut price.
B) One firm is afraid that its profit might fall drastically since the other might secretly cut price.
C) One firm is afraid that its profit might fall drastically since the other might raise price.
D) One firm is afraid that its profit might fall drastically since oil prices may go up.
Correct Answer:
Verified
Correct Answer:
Verified
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