Question

You and the owner of the shoe store across the street decide to engage in collusion and fix prices to _____. decrease revenues maximize profits lower production costs

Answer 1

You and the owner of the shoe store across the street decide to engage in collusion and fix prices to maximize profits. The answer to the missing detail in your statement is maximize profits. Profits maximization is either a long or short term process which a firm evaluates the price and output level which returns the greatest profit.