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AP® Microeconomics

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Mood to Collude

APMICR-QFLMBR

Which of the following examples describes a situation in which firms within an industry are most likely to collude?

A

The firms are price takers.

B

The firms enjoy easy entry and exit from the market.

C

The firms produce at their profit-maximizing level of output.

D

The firms engage in strategic behavior on an ongoing basis.

E

The firms engage in product differentiation.