0
Want this question answered?
Be notified when an answer is posted
Add your answer:
Earn +20 pts
Is price-fixing a type of collusion?
Price fixing can only be collusion if it happens due to all the firms in an oligopoly system come together to decide the price. Price fixing can also be implemented by government (especially in agriculture sector), in which case is not considered a collusion.
How would price fixing and collusion help producers?
secret
What are the three practice of oligopolies that concern the government the most?
Price Fixing, Collusion, And Cartels
What are the conditions necessary for effective price leadership?
what are the conditions necessary for price leadership
Why might price collusion occur in oligopolistic industries?
Price collusion may occur in oligopolistic industries because the suppliers may want to guarantee high profits for each other. If one reduces the prices too much, the other may be forced to also reduce and this may lower profits for one player.
What is the difference between overt and covert collusion's?
Overt collusion is where firms in an oligopoly formally set a price together, (usually high to maximize profits). This is usually done in secret because its illegal in most countries, but the main characteristic is that it is formal. I believe overt collusion is where on firm in an oligopoly reacts to a price drop in another firms from that oligopoly. For instance a competing firm drops there price from £1 to 50p, the other firms will have to otherwise they will lose profits, allthoufh this is bad for all firms because everybody loses potential profits. Am still researching this though so not 100% on overt collusion.
Is price-fixing a type of collusion?
Price fixing can only be collusion if it happens due to all the firms in an oligopoly system come together to decide the price. Price fixing can also be implemented by government (especially in agriculture sector), in which case is not considered a collusion.
How would price fixing and collusion help producers?
secret
What are the three practice of oligopolies that concern the government the most?
Price Fixing, Collusion, And Cartels
What are the three practicing of oligopolies that concern the government the most?
Price Fixing, Collusion, And Cartels
What are the conditions necessary for price leadership?
what are the conditions necessary for price leadership
What are the conditions necessary for effective price leadership?
what are the conditions necessary for price leadership
Why might price collusion occur in oligopolistic industries?
Price collusion may occur in oligopolistic industries because the suppliers may want to guarantee high profits for each other. If one reduces the prices too much, the other may be forced to also reduce and this may lower profits for one player.
How do I covert a price for meters into a price per 1000 meters. Ex 30000 at 0.1589 to price for 1000 meters?
Multiply the price by 1000 - in this case it's 158.90 per 1000 metres
What do you call an agreement made between companies to charge the same amount for products?
It is called "price collusion" and it is a criminal offence for companies to do this - they are rigging the market.
What is price leadership by low cost firm?
Price leadership by low cost firm is what results when a firm determines the prices of services and goods within its sector.
What is the difference between cartel and collusion?
A cartel is a formal agreement between companies to control the price of a commodity or product etc - like OPEC. Tacit collusion occurs when companies make an informal agreement to fix prices (i.e. they do this without letting their competitors or official bodies know). Your confusion might arise from the fact that members of a Cartel (an officially organised group) can still engage in unofficial agreements (tacit collusion), although it is usually firms outside a cartel who do this
