Microeconomics
Microeconomics
5th Edition
ISBN: 9781319098780
Author: Paul Krugman, Robin Wells
Publisher: Worth Publishers
Question
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Chapter 14, Problem 10P
To determine

Whether the behavior warrants an antitrust investigation for possible illegal acts or is an example of undesirable, but not illegal, tacit collusion.

Concept Introduction:

Antitrust Investigation − Antitrust investigation is done to stop large firms from taking over their competitors by fixing prices or by interfering with free competition in any way.

Tacit Collusion − Tacit collusion is a circumstance where two companies agree upon a certain strategy without putting it in writing or spelling out the strategy explicitly.

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