Question

An agreement between Nextflix and Flixbuster to each supply 250 subscriptions is an example of:

a. price discrimination.
b. Bertrand competition.
c. price leadership.
d. collusion.
e. increasing marginal costs

Answer 1

correct answer is d. collusion

Step-by-step explanation:

Nextflix and Flixbuster both did an agreement for supply every 250 subscriptions so it is collusion because collusion is that when 2 or more companies get together and make a secret agreement

and it is possibly unethical so collusion is an illegal practice and there is Antitrust law to preventing collusion between 2 or more companies

because these type of company operate to detriment of the third party

and these type of secret agreement occur for sale and purchase and advertising

so correct answer is d. collusion