Multiple Choice
The table below shows the payoff (profit) matrix of Firm A and Firm B indicating the profit outcome that corresponds to each firm's pricing strategy (where $500 and $200 are the pricing strategies of two firms) .Table 12.2
-Which of the following statements about collusion is true?
A) Collusion is legal in the United States.
B) Its overriding goal is to enhance competition and thereby increase profits.
C) The greater the number of firms, the less difficult it is to maintain a collusion.
D) Collusion never results in benefits for the participants.
E) Collusion may help to increase the profits of the participating firms.
Correct Answer:

Verified
Correct Answer:
Verified
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