Question

At their regular monthly meeting, a group of local brokers agrees that the introduction of "discount brokerages" in their area would be bad for business. The brokers agree that, as a group, they will not charge less than 6% commissions for the year. An individual broker could set a fee higher than that if he chooses. This type of agreement

Answer 1

Answer:

would be considered collusion.

Explanation:

Collusion refers to an illegal agreement between two or more businesses that decide to cooperate together by setting prices or production quotas. This businesses should naturally compete against each other, not team up to charge higher fees. Collusion is illegal because it leads to unfair market advantages because they negatively affect competition.