CFA Practice Question

There are 923 practice questions for this topic.

CFA Practice Question

Collusion is motivated by a desire to ______.

A. reduce costs by eliminating unnecessary competition
B. increase profits by eliminating competition
C. better meet the needs of consumers through cooperation
D. avoid competition and increase profits
Correct Answer: D

Collusion is motivated by the desire to avoid competition and increase profits.

User Contributed Comments 6

User Comment
cgeek B?
Claudio You cannot eliminate competition. just wording difference I think.
Done You can eliminate competition but then it's desire turns into price fixing which is illegal.
wulin Eliminating competition = Kicking firms out of market.
Avoiding competition = Everybody in without competition.
YOUCANDOIT nice explanation wulin!
walterli Russian Collusion
You need to log in first to add your comment.